11:12 AM EDT, 08/15/2024 (MT Newswires) -- PNC Financial Services ( PNC ) can sail through several macroeconomic challenges while investing in growth opportunities due to potential market dislocations, BofA Securities said in a Thursday note.

The firm is expected to post "solid" net interest income growth of 7.7% in 2025 and 6% in 2026, analyst Ebrahim Poonawala added.

New mergers and acquisitions deals for PNC could be a "positive catalyst", Poonawala said, adding that a strong stock currency, healthy balance sheet, and low regulatory issues should make "PNC a partner of choice for regional banks seeking strategic alternatives."

Additionally, the note said Texas and Southwest regions provide growth opportunities as PNC earns through BBVA US's branch distribution and benefits in the country through the "Texas demographic boom."

BofA Securities upgraded PNC Financial to buy from neutral and raised its price target to $200 from $185.

Shares of the company were up 2.5% in recent Thursday trading.

Price: 172.52, Change: +4.15, Percent Change: +2.46