PNC Financial shares could rise by 20 pct in 2013 - Barron's

NEW YORK Sun Dec 23, 2012 6:10pm EST

NEW YORK Dec 23 (Reuters) - Shares of PNC Financial Services Group Inc could rise by 20 percent in 2013 as a growing fee business may bolster the company's bottom line, Barron's said on Sunday.

PNC's shares are set to close out 2012 nearly flat on the year at about $59, but could rally to as high as $70 in 2013, and the stock pays a 2.7 percent yield while you wait, Barron's said in its Dec. 24 issue.

In addition to the growing fee business, new commercial and industrial loans could boost earnings as the bank "stands to benefit from a strong farm economy, increased fracking activity and a manufacturing revival in its Midwest turf," Barron's said.

"If the stock starts to gain some well-deserved respect, its price/earnings multiple - now 8.9 times 2013 estimated earnings -- could rise, pushing the shares up some 20 percent," the publication said.