Hoefer & Arnett Starts PNC Financial at 'Reduce'

Hoefer & Arnett Starts PNC Financial at 'Reduce' 


SAN FRANCISCO, Dec. 15  /PRNewswire/ -- Hoefer & Arnett financial services
analyst Chris Siedman initiated research coverage on PNC Financial Services
(PNC) today with a $57 price target and a Reduce recommendation.  The analyst
cited both the company's slow-growing footprint, an expected decline in gains
from loan sales, and potentially higher credit costs as possible reasons PNC's
return on equity could drop next year to an estimated 16.4% from the 17% range
where it has hovered since 2001 and the 20.6% average the company exhibited in
the late 1990s.  In addition, the analyst indicated that PNC may be overpaying
in its pending acquisition of Riggs National (RIGS) in view of the Washington,
D.C. based company's loss of customer deposits, falling net interest margin,
and the 18% annualized rate of decline in non-interest revenue (excluding
venture capital gains) from continuing operations over the last two quarters.
Hoefer & Arnett estimates PNC could post core earnings of $1.01 per share in
the fourth quarter and $4.32 next year (or $4.19 per diluted share on a GAAP
basis).

  Trading [phone]
  http://www.hoeferarnett.com/



All expressions of opinion reflect the judgment of the Research Department of
Hoefer & Arnett, Inc. at this date and are subject to change. We have obtained
information from sources considered reliable, but we do not guarantee that the
foregoing report is accurate or complete. Other departments of Hoefer & Arnett,
Inc may have information, which is not available to the Research Department
about companies mentioned in this report. Hoefer & Arnett, Inc., or its
affiliates may execute transactions in the securities mentioned in this report,
which may not be consistent with the report's conclusions. Hoefer & Arnett,
Inc. may perform investment banking or other services for, or solicit
investment-banking business from any company mentioned in this report.
Partners, officers, employees and accounts controlled by Hoefer & Arnett, Inc.
may own shares of any company mentioned herein.

Hoefer & Arnett Incorporated is a member of the National Association of
Securities Dealers, CRD number 10883. 

DATASOURCE: Hoefer & Arnett Incorporated



CONTACT:  Chris Siedman, Analyst, [phone] or

, or Sharlena Bolden, Research Coordinator,

[phone] or , both of Hoefer & Arnett

Incorporated



Web site:  http://www.hoeferarnett.com/

Copyright