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Tuesday, Jefferies initiated coverage on shares of Huntington Bancshares (NASDAQ:HBAN), issuing a Buy rating with a price target of $20.00. The firm highlighted Huntington’s standout performance within the regional banking sector, anticipating mid to high single-digit growth in key financial metrics for the current year. InvestingPro data shows 10 analysts have recently revised their earnings estimates upward for the upcoming period, supporting this optimistic outlook.
The optimism for Huntington Bancshares stems from expected increases in loans, deposits, net interest income (NII), and fee income, which are seen to outpace the performance of its regional banking peers. This growth comes despite an uncertain economic environment, which has posed challenges for the broader financial sector. The bank’s recent performance supports this outlook, with revenue growing at 5.17% and maintaining a healthy market capitalization of $23.22 billion.
Jefferies noted that Huntington Bancshares is currently trading at 9.0 times its projected 2026 earnings per share (EPS), a valuation that aligns with the average of its peer group. This valuation is seen by Jefferies as an attractive entry point for investors, suggesting that the bank’s stock could offer a favorable investment opportunity. InvestingPro analysis reveals the bank currently trades at a P/E ratio of 12.06 and offers a substantial dividend yield of 3.85%, having maintained dividend payments for 55 consecutive years. For deeper insights into Huntington’s valuation metrics and growth potential, investors can access the comprehensive Pro Research Report, available exclusively on InvestingPro.
The research firm also provided insights into Huntington’s recent growth trajectory, citing a compound annual growth rate (CAGR) for loans and deposits through the first quarter at 4.6% and 6.7%, respectively. These figures markedly exceed those of its regional counterparts, which have CAGRs of 0.2% for loans and 2.1% for deposits.
The Buy rating and price target set by Jefferies reflect confidence in Huntington Bancshares’ potential for continued financial performance and growth, positioning it favorably within the regional banking landscape.
In other recent news, Huntington Bancshares reported strong first-quarter 2025 results, surpassing analysts’ expectations with an earnings per share (EPS) of $0.34, compared to the forecasted $0.31. The company also exceeded revenue projections, posting $1.94 billion against an anticipated $1.89 billion. Deutsche Bank (ETR:DBKGn) has upgraded Huntington Bancshares’ stock rating to Buy, citing robust loan growth and strategic company initiatives, while adjusting the price target to $17.50. Truist Securities, while maintaining a Buy rating, lowered its price target to $17, pointing to increased recession risks despite the bank’s stronger-than-expected first-quarter performance. DA Davidson also kept a Buy rating on the stock, adjusting the price target to $18, citing solid loan growth and positive credit trends. Analysts have highlighted Huntington’s strong net interest income and loan growth, which have contributed to the bank’s positive outlook. Despite economic uncertainties, Huntington Bancshares continues to expand its capital markets capabilities and geographic presence, reinforcing investor confidence.
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