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