Citi sees profitability upside in Old National Bancorp shares, updates price target

Published 22/01/2025, 11:28
Citi sees profitability upside in Old National Bancorp shares, updates price target

On Wednesday, Citi analysts increased their price target on Hancock Whitney (NASDAQ:HWC) shares to $70.00, up from the previous $61.00, while reiterating a Buy rating for the bank's stock. The adjustment follows Hancock Whitney's strategic moves in 2024, which are expected to yield positive results in the coming year.

Citi's analysis points to Hancock Whitney's balance sheet repositioning in 2024 as a foundation for anticipated growth. The bank's strategy included accelerating recruitment and intentionally allowing the runoff of non-core loans. The analysts project that while the impact of new hires may not significantly boost the first half of 2025, the core franchise is poised to gain momentum during this period, with additional growth driven by these hires in the second half of 2025 and into 2026.

The report also suggests that Hancock Whitney's management is looking to utilize excess capital, potentially through acquisitions in banking or fee income businesses. Citi finds the bank's current earnings outlook attractive, especially when compared to its peers' valuation multiples.

The increased price target to $70 reflects Citi's optimism about Hancock Whitney's future earnings, which are likely to outperform previous expectations. This positive outlook is anchored in the bank's operational strategies and anticipated loan growth trends.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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