Baird lifts Huntington stock rating, sets $18 target

On Friday, Baird analyst David George upgraded shares of Huntington Bancshares (NASDAQ:HBAN), shifting the rating from Neutral to Outperform and setting a price target of $18.00. The adjustment comes after Huntington’s stock experienced a decline of approximately 12% over the last month, in contrast to the S&P 500’s 5.5% drop, which George views as a strategic entry point for investors.

George highlighted Huntington’s potential to achieve above-average pre-provision net revenue (PPNR) growth in the upcoming years. This optimism is based on anticipated net interest margin (NIM) expansion, new market initiatives, and the expansion of its fee-based businesses. According to InvestingPro analysis, the bank maintains a "Fair" overall financial health score of 2.22 out of 3, with particularly strong marks in profitability. He noted that insider ownership at Huntington is substantial, which often aligns management’s interests closely with those of shareholders.

The analyst’s confidence in Huntington is also supported by the stock’s current valuation. Trading at a P/E ratio of 12.15 and currently showing signs of being undervalued according to InvestingPro Fair Value metrics, combined with a robust dividend yield of 4.1% that has been maintained for an impressive 55 consecutive years, George believes that the current market conditions present an attractive opportunity to invest in the Ohio-based bank.

Investors have taken note of Huntington’s high dividend yield and the potential for revenue growth as outlined by Baird. The bank’s commitment to expanding its market presence and fee-based services is seen as a foundational strategy for future growth.

To conclude, with Baird’s upgraded rating and a new price target, Huntington Bancshares is now positioned as a stock with promising prospects, according to the firm’s analysis. The bank’s stock is anticipated to benefit from the strategic initiatives laid out by management, aimed at driving long-term shareholder value.

In other recent news, Huntington Bancshares has been the subject of several analyst updates, highlighting its financial prospects and strategic focus. DA Davidson maintained a Buy rating on the company, setting a price target at $20.50. The firm expressed confidence in Huntington’s potential for revenue growth and operational efficiency, emphasizing the bank’s focus on organic growth rather than mergers and acquisitions. Truist Securities also retained a Buy rating, raising its price target to $21.00, citing increased earnings per share estimates for 2025 and 2026 and the bank’s strong loan and deposit growth.

Meanwhile, DA Davidson slightly lowered its price target from $21.50 to $20.50, maintaining a Buy rating despite minor adjustments to earnings forecasts. The firm noted Huntington Bancshares’ robust revenue growth, though slightly offset by increased expenses. Evercore ISI also showed optimism, increasing its price target to $20.00 while maintaining an Outperform rating, highlighting the bank’s favorable loan and deposit trends.

Truist Securities initiated coverage with a Buy rating and a $19.00 price target, praising Huntington’s strategic expansion into new markets like Texas and the Carolinas. The bank’s focus on capital deployment and market share growth was noted as a positive factor for future growth. These recent developments underscore Huntington Bancshares’ strategic initiatives and potential for continued financial success.

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