Truist lifts Huntington Bancshares stock target to $21, keeps Buy rating

On Tuesday, Truist Securities updated its outlook on Huntington Bancshares (NASDAQ:HBAN), increasing the price target from $19.00 to $21.00 while retaining a Buy rating on the stock. The revision reflects the firm's positive stance on the bank's future earnings and growth potential. According to InvestingPro data, five analysts have recently revised their earnings estimates upward, with the stock currently trading at a P/E ratio of 13.85x.

The updated price target comes after an analysis of the company's expected earnings per share (EPS) for the coming years. Truist Securities' analyst Brian Foran raised the estimated EPS for 2025 from $1.39 to $1.42 and for 2026 from $1.59 to $1.71. This adjustment is based on a set of key factors that are anticipated to drive the bank's growth. With a market capitalization of $25 billion and a solid Financial Health Score of "GOOD" on InvestingPro, the bank demonstrates strong fundamentals.

Foran highlights several growth drivers for Huntington Bancshares, including continued leading growth in loans, deposits, and fees. Additionally, higher net interest margin (NIM) expectations are anticipated due to a higher federal funds rate. The analyst also expects lower reserve builds and the potential for share repurchase programs to resume in 2026.

The analyst's expectations for 2025 include a 3.00% NIM, 6% loan growth, 4% deposit growth, and 6% fee growth, with a 4% increase in expenses and a net charge-off ratio of 30 basis points. These projections fall within the guidance ranges provided by the management of Huntington Bancshares.

Looking ahead to 2026, Truist Securities anticipates Huntington Bancshares could repurchase $500 million in shares throughout the year. This repurchase plan aims to achieve an approximate 9.5% adjusted Common Equity Tier 1 (CET1) ratio, aligning with the company's stated medium-term operating targets. The bank has maintained dividend payments for 54 consecutive years, currently offering a 3.64% yield, and has delivered a 39.8% total return over the past year.

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In other recent news, Huntington Bancshares displayed robust financial performance with notable revenue growth, according to recent reports. The bank's strategic expansion into new markets and specialty lending verticals has driven impressive loan and deposit growth.

Analysts from DA Davidson, despite lowering the stock price target to $20.50, have maintained a Buy rating for the bank. Similarly, Truist Securities initiated coverage on the bank's shares with a positive outlook and a Buy rating.

Evercore ISI and JPMorgan have also expressed confidence in Huntington Bancshares, maintaining positive outlooks and raising their price targets. The bank's strong Q3 2024 results, featuring earnings per common share of $0.33 and a return on tangible common equity of 16.2%, have contributed to these optimistic views.

On the other hand, Citi reaffirmed its Buy rating on Huntington Bancshares, highlighting expected benefits from fixed asset repricing and the bank's strategy to manage interest rate impacts. However, Piper Sandler maintained an Underweight rating despite increasing its price target.

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