This 'Rust Belt' bank is a great economic growth play, Goldman Sachs says

An ATM is shown at company headquarters for the PNC Financial Services at One PNC Plaza in Pittsburgh, Pennsylvania.
Getty Images

Investors should buy PNC Financial Services shares because earnings results will top expectations due to improving loan growth, according to Goldman Sachs, which raised its rating on the bank to buy from neutral and added the company to its Americas conviction buy list.

"We see PNC as an underappreciated rate opportunity with operating leverage and the potential for an added benefit from liquidity deployment, excess capital returns and stronger-than-expected loan growth," analyst Richard Ramsden wrote in a note to clients Wednesday. "Management's track record on costs – meeting guidance each of the last four years – gives us confidence that revenue upside will flow through to earnings."

More In Pro News and Analysis

CNBC ProInvestment bank picks 3 stocks to buy ahead of Apple's next iPhone launch
CNBC ProAvoid crypto and 'meme stocks' and buy these instead, hedge fund manager says
CNBC ProGambling stocks like Penn are tanking. Deutsche Bank says these are the names to buy in the sell-off