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Investing.com - TD Cowen has lowered its price target on Huntington Bancshares (NASDAQ:HBAN) to $21.00 from $22.00 while maintaining a Buy rating on the stock. According to InvestingPro data, the stock appears undervalued, with seven analysts recently revising their earnings estimates upward.
The firm’s adjustment comes after Huntington reported second-quarter 2025 core earnings per share of $0.38, exceeding TD Cowen’s estimate of $0.36 and the Street consensus of $0.34.
TD Cowen noted that while the earnings beat came from "lower quality sources" including provision and tax rate factors, the bank’s overall performance continues to strengthen relative to its peers.
The research firm highlighted that Huntington "continues to pull ahead of peers" and appears well-positioned as a top quartile bank for driving revenue, earnings per share, and tangible book value growth.
Despite the price target reduction from $22.00 to $21.00, TD Cowen remains positive on Huntington’s outlook, maintaining its Buy rating on the stock.
In other recent news, Huntington Bancshares reported its second-quarter 2024 earnings, surpassing analysts’ expectations with an earnings per share (EPS) of $0.34, slightly above the forecast of $0.33. The company achieved an 8% year-over-year revenue growth, demonstrating strong business performance. Additionally, Huntington Bancshares announced the acquisition of Veritex (NASDAQ:VBTX), which is expected to enhance its market presence in Texas, a region with significant economic growth potential. DA Davidson has raised its price target for Huntington Bancshares to $20 from $18 while maintaining a Buy rating, highlighting the bank’s peer-leading loan and deposit growth. Despite these positive developments, the company faces higher incentive compensation costs, which have kept its efficiency ratio stable at around 59% for the past five quarters. Huntington Bancshares also declared a quarterly cash dividend of $0.155 per common share, consistent with the previous quarter. The company projects full-year net interest income growth of 8-9%, with loan growth expected to increase by 6-8% and deposit growth projected at 4-6%. These developments indicate a strategic focus on expanding its footprint and optimizing its financial performance.
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