Huntington Bancshares stock rating reiterated at Buy by DA Davidson

Investing.com - DA Davidson has reiterated a Buy rating on Huntington Bancshares (NASDAQ:HBAN) with a price target of $21.00. According to InvestingPro data, analysts maintain a positive consensus on the stock, with targets ranging from $15 to $23, while the bank currently trades at an attractive 10.9x P/E ratio.

The firm’s decision follows Huntington’s announcement of its acquisition of Cadence for $7.4 billion in an all-stock transaction, which significantly strengthens the bank’s presence in Texas and adds several new growth markets in the Southeast. The deal comes as Huntington, currently valued at $22.65 billion, demonstrates solid revenue growth of 11.8% and maintains a 55-year track record of consistent dividend payments.

This acquisition complements Huntington’s earlier Vertex deal and accelerates the company’s growth strategy, despite comments during the third-quarter earnings call indicating the bank was not looking to pursue additional mergers and acquisitions.

DA Davidson noted that the financial metrics of the deal appear attractive, with approximately 200 basis points accretive to Return on Tangible Common Equity (ROTCE).

The firm also highlighted that the transaction is approximately 7% dilutive to Tangible Book Value (TBV) with a three-year earnback period. For deeper insights into Huntington’s valuation and growth prospects, access the comprehensive Pro Research Report available on InvestingPro, where 4 analysts have recently revised their earnings expectations upward.

In other recent news, Huntington Bancshares has announced a significant acquisition, agreeing to purchase Cadence Bank in an all-stock transaction valued at $7.4 billion. This move is part of a broader trend in the banking sector where institutions are merging to enhance scale and efficiency. Following the acquisition announcement, Moody’s Ratings affirmed Huntington Bancshares’ ratings but changed its outlook to negative. The rating agency maintained the bank’s long-term senior unsecured debt rating at Baa1 but revised its outlook on the banking subsidiary’s long-term deposits to negative from stable.

In addition, Huntington Bancshares has introduced a new Treasury Management Connectivity Ecosystem, designed to help business customers integrate their banking and financial systems. This platform can process over 10 million transaction events daily and offers more than 500 interfaces. Analyst firm Evercore ISI has resumed coverage of Huntington Bancshares with an Outperform rating, citing ongoing business expansion and expected above-peer returns. Furthermore, TD Cowen raised its price target for Huntington Bancshares to $22.00, maintaining a Buy rating after the company’s third-quarter 2025 results exceeded earnings estimates.

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