S&P 500 slips, but losses kept in check as Nvidia climbs ahead of results
On Wednesday, Keefe, Bruyette & Woods analyst Catherine Mealor adjusted the price target for Hancock Whitney (NASDAQ:HWC) shares, reducing it to $62.00 from the previous $68.00. Despite the decrease in the price target, the analyst reaffirmed an Outperform rating on the stock.
Mealor’s assessment acknowledges a deceleration in growth that was more pronounced than anticipated. However, she pointed out that various factors such as reduced expenses, increased fees, share buybacks, and improved credit quality have balanced the slower growth, leaving earnings per share (EPS) largely unaffected. The bank currently trades at a P/E ratio of 9.2x and price-to-book of 1.02x, with a solid dividend yield of 3.7%. InvestingPro analysis reveals the bank has maintained dividend payments for 38 consecutive years, demonstrating strong financial stability. For deeper insights into Hancock Whitney’s valuation metrics and growth potential, investors can access the comprehensive Pro Research Report, available exclusively on InvestingPro.
The bank’s slower growth trajectory this quarter and a more challenging outlook were noted as disappointing, especially since robust growth was a key component of Mealor’s investment thesis for Hancock Whitney. Nevertheless, she remains optimistic, citing the bank’s initiatives to ramp up hiring later in the year as a potential driver for back-end loaded growth in 2025. InvestingPro data shows the bank maintains a strong financial health score of "GOOD" and analysts project continued profitability for the year ahead.
Mealor also mentioned that Hancock Whitney is currently less focused on mergers and acquisitions (M&A), a strategic choice that she views positively. This approach could help the bank maintain its emphasis on organic growth without the distractions that can accompany M&A activities.
In other recent news, Hancock Whitney Corporation reported its first-quarter 2025 financial results, showcasing a strong performance. The company exceeded earnings expectations with an earnings per share (EPS) of $1.38, surpassing the forecasted $1.29. However, revenue slightly missed expectations, coming in at $367.5 million against a projected $367.92 million. Additionally, Hancock Whitney announced its expansion into Texas and the acquisition of Sable Trust Company, which is anticipated to contribute an additional $0.02 per share in 2025. The company also reported a 10% year-over-year increase in net income, reaching $120 million. Analysts from Raymond (NSE:RYMD) James and KBW noted the company’s strategic growth and robust financial health, but potential impacts of tariffs and market uncertainty were highlighted as risks. Looking forward, Hancock Whitney expects modest loan growth and a 6-7% increase in Pretax Pre-Provision Net Revenue. Despite these challenges, the company remains optimistic about its growth prospects, particularly in the latter half of the year.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.