DA Davidson cuts Hancock Whitney target to $62, keeps Buy rating

Published 16/04/2025, 15:56
DA Davidson cuts Hancock Whitney target to $62, keeps Buy rating

On Wednesday, DA Davidson analyst Gary Tenner adjusted the price target for Hancock Whitney (NASDAQ:HWC) shares, bringing it down to $62.00 from the previous $69.00, while reiterating a Buy rating on the stock. According to InvestingPro data, the stock currently trades at an attractive P/E ratio of 9.1x, with analysts setting price targets between $62 and $73. Tenner noted that Hancock Whitney’s first-quarter results demonstrated a strong net interest income (NII) and net interest margin (NIM), despite experiencing a net loan runoff during the quarter.

The company’s loan and NII forecasts were revised downward from prior projections, but management is expecting a shift to positive net loan growth in the second quarter. This anticipated improvement follows a decline in the first quarter, which was attributed to late-quarter loan paydowns. InvestingPro analysis shows the company maintains strong financial health with a "GOOD" overall score, supported by revenue growth of 7.52% in the last twelve months.

Hancock Whitney is continuing with its strategic plan, which includes efforts in recruiting and financial center expansion. According to Tenner, the company is maintaining its strategic direction and is adopting a growth-oriented approach despite the adjustments in loan and NII expectations. Notably, InvestingPro data highlights the company’s impressive 38-year track record of maintaining dividend payments, with a current dividend yield of 3.7%.

The analyst’s commentary reflects a belief in the resilience of Hancock Whitney’s core financial metrics and an anticipation of a turnaround in loan growth in the near future. The bank’s commitment to its strategic initiatives indicates a focus on long-term growth and stability.

Investors will be watching Hancock Whitney’s progress as it aims to pivot to positive net growth in the second quarter, following the challenges faced in the first quarter. The bank’s adherence to its strategic plan amidst these adjustments suggests confidence in its growth trajectory moving forward.

In other recent news, Hancock Whitney Corporation reported strong first-quarter 2025 earnings, surpassing expectations with earnings per share (EPS) of $1.38 against the forecasted $1.29. However, the company’s revenue slightly missed predictions, coming in at $367.5 million compared to an anticipated $367.92 million. Analysts from Piper Sandler and Keefe, Bruyette & Woods have differing views on Hancock Whitney’s stock target, with Piper Sandler raising it to $70 and Keefe, Bruyette & Woods reducing it to $62. The adjustment from Piper Sandler reflects optimism about the bank’s potential performance, while Keefe, Bruyette & Woods noted a more pronounced deceleration in growth.

Piper Sandler’s Brett Rabatin maintained an Overweight rating, citing strong fee revenues and a robust pre-provision net revenue guide. Meanwhile, Keefe, Bruyette & Woods’ Catherine Mealor reaffirmed an Outperform rating despite the target cut, mentioning factors like share buybacks and improved credit quality balancing the slower growth. Hancock Whitney’s recent expansion into Texas and the acquisition of Sable Trust Company were also highlighted as part of its strategic growth initiatives. The company anticipates modest loan growth for 2025, primarily in the latter half of the year, and projects a 6-7% growth in Pretax Pre-Provision Net Revenue. These developments reflect a mix of strong performance and strategic challenges for Hancock Whitney as it navigates the current financial landscape.

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