Pinnacle Financial Partners Positioned to Outgrow Peers After Synovus Merger, Morgan Stanley Says

MT Newswires Live09-08 23:30

Pinnacle Financial Partners (PNFP) is positioned to grow faster than peers following its merger with Synovus Financial (SNV), helped by "strong banker hiring," high retention and a broader Southeast footprint, Morgan Stanley said in a note Tuesday.

The investment bank expects the combined company to scale Pinnacle's "legacy growth playbook" across the franchise, with above-consensus loan and deposit growth and return on tangible common equity rising to 17.4% in 2027 from 14.1% in 2025, the report said.

About $250 million in expected "expense synergies" and future share buybacks should also support profitability, according to the report.

Morgan Stanley said the company's current post-merger valuation discount presents an "attractive entry point." The biggest risk to the positive outlook is execution, particularly whether Pinnacle can successfully scale its legacy growth model across the larger combined organization, according to the report.

Morgan Stanley initiated coverage of Pinnacle Financial Partners with an overweight rating and a $137 price target.

Price: 101.05, Change: +0.03, Percent Change: +0.03

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