Citi analysts raised their price target for Pinnacle Financial Partners (NASDAQ:PNFP) to $132 from $123, maintaining a Buy rating on the stock. The revised outlook reflects confidence in the bank’s robust long-term growth trajectory, despite potential near-term challenges.
According to the analysts, the fourth-quarter 2024 results on January 21 may come in slightly below expectations, primarily due to higher-than-anticipated deposit growth, which is pressuring net interest margin (NIM). However, Pinnacle’s ability to drive above-peer lender additions is expected to sustain its strong loan growth trends over the next two to three years.
For 2025, the bank is projected to deliver low double-digit growth across net interest income (NII), loans, and expenses, demonstrating broad-based strength. While expenses are forecasted to increase modestly in 2025 and 2026, these investments are expected to support continued expansion. Pinnacle is also strategically positioned to capitalize on additional lender additions, particularly if in-footprint mergers and acquisitions gain momentum.
The updated price target accounts for the potential upside in NIM as excess liquidity is deployed into lending credits, further enhancing profitability.