Raymond James has reaffirmed its Strong Buy recommendation for Pinnacle Financial Partners (NASDAQ:PNFP), assigning a price target of $120.00. This figure suggests a potential upside of approximately 14% from Pinnacle’s current trading price of $102.05. The bank’s shares have recently gained momentum, delivering a 4.17% return over the past week.
The reaffirmation follows the release of Pinnacle's standalone fourth-quarter 2025 results. While the company’s core earnings per share (EPS) did not meet consensus expectations, core pre-provision net revenue exhibited strength. In response, Raymond James has raised its EPS projection for 2027, signaling improved long-term earnings prospects for the bank. Supporting this outlook, data from InvestingPro reveals that six analysts have upgraded their earnings forecasts for Pinnacle, indicating heightened confidence in the company’s future performance.
Despite the increase in future EPS estimates, Raymond James adjusted the current year's EPS forecast downward. This revision takes into account elevated credit costs, which have outweighed the revenue gains following Pinnacle’s recent merger with Synovus Financial, completed early in the year.
Looking beyond the immediate term, Raymond James anticipates marginal growth in Pinnacle’s forecasted revenues. This optimism stems from expectations of sustained strong loan growth, potential synergies in revenue over the next two to three years resulting from the Synovus merger, benefits from cost-saving initiatives that could create operating leverage, and a planned $400 million share repurchase program commencing in the second half of 2026.
Although some skepticism remains regarding the long-term benefits of the Synovus merger, Raymond James highlights an attractive risk-reward profile for Pinnacle shares. Currently, the stock trades at a price-to-earnings ratio discount of one turn relative to its peers when valued against the firm’s 2027 EPS estimates.
In a recent earnings update, Pinnacle Financial Partners disclosed a mixed Q4 2025 performance. The company reported EPS of $1.47, significantly below the anticipated $2.25, marking a 34.67% shortfall. Conversely, revenue exceeded expectations, reaching $629.67 million compared to forecasts of $549.2 million, a 14.65% positive surprise. These contrasting results underscore Pinnacle’s complex financial dynamics during the quarter, where earnings lagged but revenue momentum remained strong. This disparity has sparked discussions among investors and analysts about the firm’s current financial trajectory.