Huntington Bancshares (HBAN, Financial) has been upgraded from Hold to Buy by Deutsche Bank analyst Matt O'Connor. The bank's price target is now set at $17.50, reflecting a positive outlook for the stock.
This upgrade comes as Deutsche Bank expresses confidence that the banking sector has seen its lowest point following the first quarter earnings reports. The firm anticipates further growth potential in large regional banks compared to their mega-cap counterparts, primarily due to their comparatively lower valuations.
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 $17.54 with a high estimate of $21.00 and a low estimate of $15.00. The average target implies an upside of 23.69% from the current price of $14.18. 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 $15.25, suggesting a upside of 7.55% from the current price of $14.18. 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.
HBAN Key Business Developments
Release Date: April 17, 2025
- Earnings Per Share (EPS): $0.34
- Return on Tangible Common Equity (ROTCE): 16.7%
- Preprovision Net Revenue (PPNR): $783 million, 24% year-over-year growth
- Average Loan Growth: $2.7 billion or 2.1% from the prior quarter
- Average Deposit Growth: $2.2 billion or 1.4% versus prior quarter
- Common Equity Tier 1 (CET1): 10.6%, increased by 40 basis points from last year
- Tangible Book Value Per Share: Increased by over 13% year over year
- Net Charge-Offs: 26 basis points
- Allowance for Credit Losses: 1.87%
- Net Interest Income Growth: $31 million or 2.2% growth in the quarter
- Net Interest Margin (NIM): 3.1%, up 7 basis points from the prior quarter
- Noninterest Income Growth: 6% or $27 million from the prior year
- Payments Revenue Growth: 6% year over year
- Wealth Management Fees Growth: 15% year over year
- Capital Markets Growth: 20% year over year
- Noninterest Expense: Decreased by $26 million sequentially
- Share Repurchase Authorization: $1 billion multiyear program
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Huntington Bancshares Inc (HBAN, Financial) reported strong loan and deposit growth, with average loans increasing by almost $9 billion and deposits by $11 billion year over year.
- The company achieved a 10% year-over-year revenue growth and a 24% increase in pre-provision net revenue (PPNR), indicating robust financial performance.
- Net interest margin improved to 3.1%, supported by disciplined deposit pricing and effective management of interest rate risks.
- Huntington Bancshares Inc (HBAN) maintained strong credit performance with net charge-offs at 26 basis points and an allowance for credit losses at 1.87%.
- The company announced a $1 billion multiyear share repurchase authorization, reflecting confidence in its capital position and future growth prospects.
Negative Points
- The economic outlook for 2025 is uncertain, with increased probability of adverse scenarios that could create headwinds for the industry.
- Criticized asset ratio increased to 3.98%, indicating some deterioration in asset quality.
- Noninterest income growth is subject to market conditions, particularly in areas like M&A advisory, which are sensitive to economic uncertainty.
- The company is cautious about loan growth in the second half of the year, reflecting potential economic challenges.
- There is a potential for modest drag from the hedging program on net interest margin, depending on future interest rate movements.
