Huntington Bancshares stock price target raised to $20 at BofA Securities

Published 04/09/2025, 11:06
Huntington Bancshares stock price target raised to $20 at BofA Securities

Investing.com - BofA Securities raised its price target on Huntington Bancshares (NASDAQ:HBAN) to $20.00 from $19.00 on Thursday, while maintaining a Buy rating on the regional bank’s stock. The new target aligns with broader analyst expectations, as current targets range from $15.40 to $21.00, according to InvestingPro data.

The firm cited two potential drivers for a price-to-earnings ratio re-rating, including confidence that revenue growth can sustainably outperform peers and increased investor interest in regional banks that could better reflect Huntington’s growth potential. The bank currently trades at a P/E ratio of 12.8x and has demonstrated solid revenue growth of 7.91% over the last twelve months.

BofA Securities noted that upside surprise on loan and revenue growth could serve as a catalyst, providing confirmation that the bank’s investments are delivering results. Notably, InvestingPro analysis shows the bank has maintained dividend payments for 55 consecutive years, demonstrating consistent financial strength. Get access to additional valuable insights and 6 more ProTips with an InvestingPro subscription.

The firm revised its fiscal year 2026/2027 earnings per share estimates to $1.63/$1.86 and based the new price objective on 12.5x FY26 P/E (unchanged) and 1.8x (versus previous 1.6x) year-end 2026 estimated tangible book value.

BofA Securities sees upside potential to consensus growth forecasts in outer years and cited improved earnings per share visibility as part of its rationale for the price target increase.

In other recent news, Huntington Bancshares reported second-quarter 2025 core earnings per share of $0.38, surpassing both TD Cowen’s estimate of $0.36 and the Street consensus of $0.34. The company has demonstrated strong business momentum with peer-leading loan and deposit growth, as noted by DA Davidson, which raised its price target for the bank to $20 from $18 while maintaining a Buy rating. TD Cowen, however, adjusted its price target to $21 from $22 but kept a Buy rating.

Additionally, Huntington Bancshares has maintained its quarterly cash dividend of $0.155 per common share, with dividends also declared on five series of its preferred stock. Keefe, Bruyette & Woods reiterated a Market Perform rating for the bank, highlighting its robust loan and deposit growth. The bank’s second-quarter 2024 earnings had previously beaten expectations with an EPS of $0.34, contributing to an 8% year-over-year revenue increase. Despite these positive earnings, the stock experienced a slight decline in regular trading during that period.

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