Pinnacle Financial Partners Inc: Catalyst Pushed Out, but EPS De-risked

Research evidence excerpt

Pinnacle Financial Partners Inc: Catalyst Pushed Out, but EPS De-risked

Global Research

27 July 2026ab

Pinnacle Financial Partners Inc Equities

United StatesCatalyst Pushed Out, but EPS De-risked

Banks, Ex-S&L

12-month rating Buy

Our call

A dense quarter with numbers being revised 3% lower, albeit FY27 EPS now feels more 12m price target US$120.00

de-risked. Seasonally strong 2H should support the n/t narrative, though re-rating

potential likely pushed out a couple quarters. Reiterate Buy rating and $120 PT.

Price (27 Jul 2026) US$103.06

Summary RIC: PNFP.N BBG: PNFP US

Revised EPS should be supported by typical 2H deposit seasonality, a rebound in SOFR, Trading data and key metrics

and normalized PAA (+$1MM in both 3Q and 4Q). That said, consensus expenses still

52-wk range US$103.28-82.10

appear low, and FY27 NII may retain a downside bias. Cat IV liquidity a 3–4bp NIM

Market cap. US$15.6b

headwind for a couple of years, but NII growth, fee recovery, and buybacks should help

Shares o/s 151m (COM)

sustain double-digit EPS growth thru FY28. We lower our FY27/28 EPS ests. to $11.39/

Free float 96%

$12.87 from $11.74/$13.35, and reiterate our Buy rating and $120 PT (10.5x FY27 EPS).

Avg. daily volume ('000) 407

NIM Math Avg. daily value (m) US$39.9

Common s/h equity (12/26E) US$14.6b

NIM faces structural pressure into the low-3.30%s from the current 3.45%, though we

believe buyside est. may be overly punitive on the pace of decline. Current loan spreads P/BV (12/26E) 1.1x

minus deposit costs were 3.72% for 2Q, with loan spreads actually improving and Tier 1 ratio 11%

deposit costs stable (+1bp). HQLA build subtracts the other~40bps of spread EPS (UBS, diluted) (USD)

compression to 3.30%, owing 3-4bp/qtr of NIM impact from debt and cash/securities 12/26E