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On Monday, DA Davidson reaffirmed its confidence in Huntington Bancshares (NASDAQ:HBAN), maintaining a Buy rating on the bank’s stock, despite reducing the price target to $18.00 from the previous $19.00. This adjustment follows Huntington’s first-quarter results and updated guidance, which have bolstered the firm’s conviction in the bank as a top pick for 2025. According to InvestingPro data, the stock currently trades at an attractive P/E ratio of 10.52x, with five analysts recently revising their earnings estimates upward.
The analyst highlighted a 2.2% growth in net interest income (NII), attributing it to a core margin expansion of 4 basis points and a solid loan growth of 2.1%. The bank’s performance in expansion markets and new specialty lending verticals has been particularly noteworthy, contributing to what DA Davidson describes as peer-leading growth in loans and deposits. With a market capitalization of $19.91 billion and a robust dividend yield of 4.54%, Huntington continues to demonstrate strong fundamentals despite its 15.1% year-to-date price decline.
Further, the firm anticipates Huntington to achieve peer-leading positive operating leverage at approximately 270 basis points. Credit trends have been positive for the bank, and it continues to maintain strong capital ratios, which reinforces the firm’s decision to keep a Buy rating on the stock. Despite the optimism, the price target was lowered to reflect a more conservative valuation in the near term. InvestingPro analysis reveals that Huntington has maintained dividend payments for 55 consecutive years, with additional insights available in the comprehensive Pro Research Report.
In other recent news, Huntington Bancshares Incorporated reported impressive first-quarter 2025 earnings, surpassing analysts’ expectations. The company achieved an earnings per share (EPS) of $0.34, exceeding the forecasted $0.31, and posted revenue of $1.94 billion against an anticipated $1.89 billion. This performance highlights Huntington’s ability to capitalize on favorable interest rate conditions, with a notable increase in net interest income by 11% compared to the previous year. The firm’s net interest margin rose to 3.10%, marking a sequential increase, while pre-provision net revenue surged by 24% year-over-year to $783 million. Despite economic uncertainties, Huntington continues to demonstrate robust loan and deposit growth, supported by strategic talent acquisitions and market expansion. Analysts from UBS and Evercore ISI noted the company’s strong deposit pricing strategy and successful execution in new loan initiatives. Huntington’s management remains confident in its strategic positioning, projecting full-year loan growth of 5-7% and deposit growth of 3-5%.
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