A Fresh Look at Pinnacle Financial Partners (PNFP) Valuation Following Strong Results and National Workplace Honors

Pinnacle Financial Partners (PNFP) recently announced strong third quarter results, with healthy jumps in net interest income and net income from last year. The company is also earning recognition for its inclusive workplace culture and diverse leadership.

See our latest analysis for Pinnacle Financial Partners.

Pinnacle Financial Partners has had plenty for shareholders to consider recently, with a big leap in third quarter earnings, plus fresh accolades for workplace culture and SBA lending leadership. Despite these achievements, the stock’s share price return is down 22.3% year-to-date, and the 1-year total shareholder return sits at -11.6%. Still, its five-year total shareholder return of 103% shows long-term holders have been well rewarded, even if momentum has cooled over the past few months.

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With strong growth in earnings and high marks for leadership, but a stock price well below analyst targets, the key question is whether Pinnacle Financial Partners is undervalued or if the market has already priced in all future gains.

Most Popular Narrative: 19% Undervalued

Pinnacle Financial Partners' most widely followed narrative sets its fair value at $109.31, a clear premium to the recent closing price of $88.26. The narrative’s case relies on robust expansion strategies and forward-looking financial assumptions that point to substantial upside compared to where shares currently trade.

Strategic hiring of experienced revenue producers directly from large competitors, combined with rapid integration and high asset quality, enables organic balance sheet expansion at a pace (10 to 13% asset and deposit growth) far above industry medians, supporting reliable EPS and tangible book value per share growth.

Read the complete narrative.

Wondering what projections drive this bullish view? The narrative’s fair value is built on ambitious growth rates, sharper margins, and a profit outlook that will raise eyebrows. Find out what financial assumptions set this price apart from the crowd.

Result: Fair Value of $109.31 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, concentrated exposure to Southeastern markets and rising competition from fintechs could derail growth if economic trends or customer preferences shift unexpectedly.

Find out about the key risks to this Pinnacle Financial Partners narrative.

Build Your Own Pinnacle Financial Partners Narrative

If you have a different take or want to test your own view of Pinnacle Financial Partners, it only takes a few minutes to build your perspective from the ground up. Why not Do it your way?

A good starting point is our analysis highlighting 5 key rewards investors are optimistic about regarding Pinnacle Financial Partners.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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