NEW YORK -- Goldman Sachs & Co. analyst Sally Pope Davis removed PNC Bank Corp. from her recommended list and downgraded the stock to "moderate performer."
Ms. Davis also cut her 1994 operating earnings estimate to $3.20 a share from $3.25. In 1993, PNC Bank had net income of $3.06.
The Goldman Sachs analyst said the downgrade was based on a lack of "revenue momentum" at PNC. The Pittsburgh-based institution, which boasts about $64 billion of assets, recorded a year-on-year profit gain of 11% for the second quarter.
But Ms. Davis said the company was having difficulty squeezing revenue out of core businesses such as investment management and mortgage banking.
Ms. Davis said she thought PNC would achieve its earnings goals this year, but added it would do so through cost controls.
"We think they're a very well-run company and the stock has a good yield," Ms. Davis said. "We just couldn't make the case for significant performance. This just isn't the best environment for them right now."