Pinnacle Financial Partners (PNFP) has "too much value to ignore" with its shares trading 7.5 times its projected 2027 EPS, which is 25% below its peers' valuations, UBS said in a Tuesday note, assuming coverage of the company's stock.

Even with execution risks, UBS analysts said they expect the valuation gap to narrow as the company's operational risks are addressed, providing a potential upside of 28%.

The analysts expect catalysts to accumulate and build momentum starting in Q1, the first earnings report of the combined company post-merger with Synovus Financial. Another catalyst will occur in Q3, when most investors shift to using full-year 2027 EPS in their valuation methodologies, the firm noted. The final catalyst will hit during systems conversion in Q1 of 2027, when cost savings will accelerate, according to the note.

UBS assumed coverage of the company with a stock rating of buy and a price target of $110.

Price: 88.20, Change: -0.03, Percent Change: -0.03