Broker: Pinnacle ‘best in class’ but shares staying put

By Geert De Lombaerde Posted on February 4, 2009 at 3:02 pm

Memphis-based Wunderlich Securities has begun covering shares of Pinnacle Financial Partners with a ‘hold’ rating. Analyst Kevin Reynolds says Pinnacle (Ticker: PNFP) “exemplifies the best characteristics of a high-quality community bank,” but expects it to earn $1.35 per share this year, below the consensus of $1.38.

While Pinnacle’s ability to continue posting strong results is likely to get more difficult in a severe recession, we are highly confident in management’s ability to prudently navigate the choppy waters of economic uncertainty while still posting results that surpass that of its southern community bank peers.

Reynolds has a $26 price target on Pinnacle, which closed at $23.37 this afternoon.

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Tags: analyst actions, banking, Pinnacle Financial Partners Inc., stock valuation, Wunderlich Securities Inc.  

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