Update shared on 17 Oct 2025
Fair value Decreased 2.48%Sun Belt Markets And Digital Banking Will Unlock Future Value
The analyst price target for Pinnacle Financial Partners has been lowered modestly, with the average fair value estimate falling from approximately $112.08 to $109.31. Analysts cite the upcoming Synovus merger, ongoing integration risks, and mixed expectations for future performance as reasons for this adjustment.
Analyst Commentary
Recent analyst reports reflect a range of opinions on Pinnacle Financial Partners in the wake of its announced merger with Synovus. Analysts continue to adjust models and price targets as new information emerges, highlighting both opportunities and risks associated with the deal and the bank’s forward outlook.
Bullish Takeaways- Bullish analysts continue to view Pinnacle’s long-term growth prospects favorably, citing updated revenue estimates and the potential for performance improvement after the merger.
- Some believe the Synovus merger could position the combined bank as a leading regional competitor with significant scale in the Southeast, creating new opportunities for market expansion.
- Despite some lowered price targets, Buy and Outperform ratings remain in place, which reflects confidence in the underlying business and management’s ability to execute over time.
- Bearish analysts highlight increased execution and integration risk from the Synovus merger and warn that extended timelines to full integration could hamper performance until at least 2027.
- Concerns remain that forming a larger, more complex bank in a short period introduces operational challenges and uncertainty, especially when trying to maintain momentum during the transition.
- Several have lowered their near-term price targets and emphasize that limited upside is expected until integration is complete and results are proven, leading to more cautious ratings such as Equal Weight or Market Perform.
- There is a sense that, for now, Pinnacle is trading more in line with peers, with analysts waiting for clear evidence of successful merger execution and realization of synergies before becoming more positive.
What's in the News
- Reported net loan charge-offs for Q3 2025 totaled $16.8 million, compared with $18.3 million in the same period last year (Key Developments).
- A Special/Extraordinary Shareholders Meeting is scheduled for November 6, 2025 (Key Developments).
- No shares were repurchased by the company in the buyback tranche from April through June 2025, with $0 million deployed (Key Developments).
Valuation Changes
- Consensus Analyst Price Target (fair value) has decreased modestly from $112.08 to $109.31.
- Discount Rate has risen slightly from 6.78% to 6.79%.
- Revenue Growth projection has edged down, moving from 58.28% to 57.93%.
- Net Profit Margin estimate has increased notably, from 26.84% to 30.48%.
- Future P/E ratio forecast has fallen from 5.52x to 4.59x, which suggests expectations for improved earnings relative to price.
Disclaimer
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