Huntington Bancshares (HBAN, Financial) reported a robust first quarter with significant profit growth, fueled by increased loans and deposits. The bank also noted an expanded net interest margin and increased fee revenues, all while maintaining strict control over expenses. This positive trajectory is anticipated to continue throughout the year, with organic growth notably surpassing that of many peers.
The company highlighted its strategic initiatives in enhancing new business opportunities and expanding capabilities, particularly within the commercial and regional banking sectors. This approach has resulted in strong loan and deposit activity in key regions such as North Carolina, South Carolina, and Texas, alongside growth in specialized commercial banking and fee-based services.
Credit quality was another area of strength, with improved net charge-offs from the previous quarter and throughout 2024. Huntington's approach to managing credit risk reflects a moderate-to-low risk appetite, which has been integral to maintaining superior credit performance.
The bank's disciplined risk management has fortified its capital and liquidity metrics, positioning Huntington in the top quartile of credit performers. This strength allows Huntington to navigate various economic environments effectively. The bank's ongoing ability to adapt and capitalize on market disruptions underscores its resilience and strategic foresight as economic conditions evolve.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 18 analysts, the average target price for Huntington Bancshares Inc (HBAN, Financial) is $17.93 with a high estimate of $21.00 and a low estimate of $15.00. The average target implies an upside of 35.10% from the current price of $13.27. More detailed estimate data can be found on the Huntington Bancshares Inc (HBAN) Forecast page.
Based on the consensus recommendation from 21 brokerage firms, Huntington Bancshares Inc's (HBAN, Financial) average brokerage recommendation is currently 2.1, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Huntington Bancshares Inc (HBAN, Financial) in one year is $15.17, suggesting a upside of 14.32% from the current price of $13.27. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Huntington Bancshares Inc (HBAN) Summary page.
