Pinnacle Financial Partners (PNFP) offers an opportunity to own a "high-growth" Southeast regional bank at a discount, BofA said in a Monday research note.
Analyst at BofA said that investors are "overestimating" the execution risk associated with the company's merger of equals with Synovus Financial, and that additional potential deal synergies from a larger balance sheet and a broader product suite offer upside to the its revenue growth forecast.
BofA said its earnings per share forecast for Pinnacle Financial Partners implies a 15.9% average annual growth for fiscal 2026 to 2028 compared to 12.2% for the company's peers.
While execution risk should not be underestimated, BofA said it believes that the risk profile on the company does not "justify the steep valuation discount relative to fundamental growth potential."
The firm initiated coverage on Pinnacle Financial Partners with a buy rating and a $113 price target.
Price: 96.97, Change: +0.99, Percent Change: +1.03
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