Analyst Ratings January 22, 2026

DA Davidson Maintains Neutral Outlook on Pinnacle Financial Partners Amid Merger Progress

Stability in growth and workforce retention supports cautious stance post Synovus merger

By Jordan Park PNFP
DA Davidson Maintains Neutral Outlook on Pinnacle Financial Partners Amid Merger Progress
PNFP

DA Davidson has upheld its Neutral rating and $110 price objective for Pinnacle Financial Partners following strong quarterly performance and the completion of its merger with Synovus Financial. Key metrics such as double-digit loan and deposit growth, consistent net interest margins, and improved credit quality underpin the current valuation perspective. Executive pay adjustments and multiple analyst ratings adjustments reflect market expectations in light of the merger.

Key Points

  • DA Davidson retains Neutral rating and $110 price target for Pinnacle Financial Partners after solid quarterly performance and a completed merger with Synovus Financial.
  • Pinnacle demonstrates strong double-digit growth in loans and deposits, steady net interest margins, and improvements in asset quality indicators such as classified assets and non-performing loans.
  • High employee retention rate (93.2%) suggests workforce stability through the merger integration.
  • Analysts from multiple firms have adjusted ratings positively post-merger, reflecting optimism about Pinnacle’s growth prospects and merger execution.

DA Davidson reiterated its Neutral rating on Pinnacle Financial Partners (NASDAQ:PNFP), keeping the price target steady at $110.00. This decision follows Pinnacle’s recent quarterly report, which displayed robust momentum leading into the recently finalized merger of equals (MOE) with Synovus Financial as of January 1, 2026.

Notably, Pinnacle exhibited double-digit increases in both loan and deposit volumes alongside a stable net interest margin (NIM), signaling resilience in core banking operations. Additionally, the firm reported improvements in classified assets and a reduction in non-performing loans (NPLs), which enhances the credit profile moving forward.

Workforce stability has been another bright spot amid the transition; Pinnacle’s full-time employee retention rate remains high at 93.2%, a key factor in maintaining operational continuity during integration with Synovus.

Looking ahead, DA Davidson highlighted Pinnacle’s reaffirmed forecast of 9% to 11% loan growth for the combined entity in 2026, offering clarity and a basis for near-term performance expectations post-merger.

In parallel, Pinnacle Financial Partners has undertaken adjustments to its executive compensation structure. The Chief Banking Officer, Robert A. McCabe Jr., will maintain a total target compensation of $5,890,000. His revised base salary is set at $3,465,000, augmented by a target annual bonus opportunity of $2,426,000, reflecting alignment with company performance and merger outcomes.

The market has responded with several analysts issuing updated ratings and price targets. Keefe, Bruyette & Woods increased the price target to $100.00, attributing the upgrade to higher anticipated loan growth in 2026. Evercore ISI and RBC Capital initiated coverage with Outperform ratings, citing confidence in Pinnacle’s ability to achieve merger objectives. Moreover, Piper Sandler elevated Pinnacle to Overweight and raised the price target to $120.00 following the Synovus acquisition.

Risks

  • Despite double-digit growth, maintaining loan growth between 9% and 11% in 2026 for the merged entity carries uncertainties inherent to financial market dynamics and integration complexities.
  • Executive compensation changes signal management incentives tied closely to merger performance - misalignment could affect leadership stability.
  • The integration of two large financial institutions involves operational risks that can impact asset quality, employee retention, and customer relationships, influencing overall financial outcomes.

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