Update shared on 17 Nov 2025
Fair value Decreased 0.64%Analysts have modestly reduced their price targets for Pinnacle Financial Partners. Updated estimates reflect continued merger-related execution risks and a cautious outlook, as the average target declines from approximately $107.77 to $107.08.
Analyst Commentary
Street research reflects a wide spectrum of views on Pinnacle Financial Partners, centered around the ongoing integration with Synovus and the outlook for value creation following the merger.
Bullish Takeaways- Bullish analysts highlight the increasingly attractive relative valuation of Pinnacle Financial, noting that recent share price movements present potential upside for investors.
- Some have upgraded their outlook and recommend an Outperform rating, signaling confidence in the company’s growth trajectory, particularly following the merger announcement.
- Positive revisions to estimates have been made based on improved revenue projections, suggesting that core business fundamentals remain solid despite ongoing consolidation.
- Expectations are that, once integration is successfully executed, Pinnacle could command a higher valuation and outperform peers over the long term.
- Bearish analysts maintain neutral or equal weight stances, citing continued execution risks tied to the merger and the creation of a larger, more complex institution.
- Several note that a clear catalyst for a meaningful re-rating in the stock may not materialize until after the merger is completed and integration is well underway. This process could take years.
- Some express caution that tangible benefits and elevated earnings power from the merger might not be evident until 2027 at the earliest, limiting near-term upside potential.
- There is an overarching view among cautious analysts that the stock’s performance may remain in line with peers, with limited opportunity for significant outperformance until further clarity emerges.
What's in the News
- Reported unaudited net loan charge-offs of $16.8 million for the third quarter ended September 30, 2025, down from $18.3 million a year ago (Key Developments).
- Scheduled a Special/Extraordinary Shareholders Meeting for November 6, 2025 to approve the Synovus merger agreement, merger-related compensation, and potential adjournment to solicit additional proxies if needed (Key Developments).
- Announced completion of a buyback tranche for the period July 1, 2025 to September 30, 2025, with no shares repurchased under the program previously announced in May 2025 (Key Developments).
Valuation Changes
- Consensus Analyst Price Target: Decreased modestly from $107.77 to $107.08, reflecting a slightly lower fair value estimate.
- Discount Rate: Rose slightly from 6.82% to 6.96%, indicating a marginally higher cost of capital in updated models.
- Revenue Growth: Increased slightly from 58.40% to 58.65%, suggesting marginally improved forward growth expectations.
- Net Profit Margin: Decreased from 29.97% to 29.83%, signaling a marginal reduction in projected profitability.
- Future P/E: Fell slightly from 4.56x to 4.55x, indicating a nearly unchanged but marginally lower forward earnings multiple.
Disclaimer
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