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On May 20, The PNC Financial Services Group Inc. (NYSE:PNC) announced the acquisition of Aqueduct Capital Group (ACG). ACG is a broker-dealer that outsources business development and fundraising services to alternatives fund managers, such as private equity, private credit, and real asset managers. PNC already provides capital advisory services through its Harris Williams unit, and the acquisition is expected to complement these services. While the deal is positive for PNC, the company hasn’t disclosed the terms of the agreement.
A person depositing money into an ATM, reflecting the various banking services offered.
In mid-May, analysts at TD Cowen initiated coverage of PNC Financial with a Buy rating and a price target of $233. Interestingly, PNC was among the top five picks of TD Cowen’s initiation of coverage on US large-cap banks, a space where the firm appears to be very bullish. They believe the banks are undervalued and are trading at least at a 30% discount. In addition, they project many years of strong growth and better returns because the banks will benefit from optimization, including through higher usage of AI.
The PNC Financial Services Group Inc. (NYSE:PNC) is a diversified financial services company. In addition to operating the PNC Bank, one of the largest banks in the US, the company provides financial services such as asset management, wealth management, estate planning, and information processing.
While we acknowledge the potential of PNC as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than PNC and that has 100x upside potential, check out our report about the cheapest AI stock.
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Disclosure: None.