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On Wednesday, Piper Sandler analyst Brett Rabatin updated his outlook on Hancock Whitney (NASDAQ:HWC), raising the price target from $68.00 to $70.00 while maintaining an Overweight rating on the bank’s shares. Currently trading at a P/E ratio of 9.22x with a market capitalization of $4.21 billion, InvestingPro analysis indicates the stock is currently undervalued. The adjustment comes as Rabatin expresses optimism about the bank’s potential performance, citing a robust pre-provision net revenue (PPNR) guide and expectations of strong fee revenues which could counterbalance the effects of slower loan growth and net interest income (NII).
Rabatin’s revised estimates for Hancock Whitney project earnings per share (EPS) at $5.50 for 2025 and $5.85 for 2026, an increase from the previous $5.34 and $5.70 estimates, respectively. This change integrates the higher PPNR guidance and is aligned with the broader ranges provided by the company for 2025, although it slightly exceeds the bank’s efficiency ratio (E/R) guide. The analyst suggests that this could leave room for additional future upside.
In terms of financial metrics, Piper Sandler’s model now anticipates Hancock Whitney will achieve a return on assets (ROA) exceeding 1.35% and a return on equity (ROE) around 11% for both 2025 and 2026. The bank’s current ROA stands at 1.3% with ROE at 12%, according to InvestingPro data. These figures, combined with an anticipated improvement in loan growth, are expected to drive a more favorable valuation for the bank in the year ahead. Discover more detailed financial metrics and exclusive insights with InvestingPro’s comprehensive research reports, available for over 1,400 US stocks.
Rabatin highlights Hancock Whitney as one of the most undervalued banks in the sector, trading at approximately 8 times Piper Sandler’s 2026 earnings estimates. The bank is noted for its top-tier deposit base, significant excess capital, and high profitability, all of which are available to investors at a discount to the price-to-earnings (P/E) ratio. Adding to its appeal, InvestingPro data shows the bank maintains a solid 3.7% dividend yield and has maintained dividend payments for 38 consecutive years. The price target of $70 is based on an approximate 12 times multiple of the firm’s 2026 earnings estimate, reflecting confidence in the bank’s financial prospects, supported by a strong analyst consensus recommendation of 1.5 (Strong Buy).
In other recent news, Hancock Whitney Corporation reported its first-quarter 2025 earnings, surpassing expectations with an earnings per share (EPS) of $1.38, compared to the forecasted $1.29. However, the company’s revenue slightly missed projections, coming in at $367.5 million against an expected $367.92 million. The company also announced a 10% year-over-year increase in net income to $120 million, reflecting its strong financial performance. Hancock Whitney has been expanding its market presence, including its acquisition of Sable Trust Company, which is expected to contribute an additional $0.02 per share in 2025.
Analysts at Keefe, Bruyette & Woods adjusted Hancock Whitney’s stock price target from $68.00 to $62.00, while maintaining an Outperform rating. The analyst, Catherine Mealor, noted a slowdown in growth but acknowledged that factors like reduced expenses and improved credit quality have kept EPS stable. Despite the slower growth trajectory, Mealor remains optimistic about the bank’s future, citing plans to increase hiring later in the year. Hancock Whitney is currently focusing on organic growth rather than mergers and acquisitions, a strategic decision viewed positively by analysts.
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