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Investing.com - Wolfe Research upgraded Huntington Bancshares (NASDAQ:HBAN) from Peerperform to Outperform with a price target of $21.00. The $25.35 billion regional bank currently trades at an attractive P/E ratio of 13.2x, with InvestingPro analysis suggesting the stock is slightly undervalued based on its Fair Value model.
The upgrade reflects Wolfe Research’s confidence in Huntington’s net interest margin expansion potential through 2026, driven by fixed-rate asset repricing tailwinds and the bank’s ability to match fund loan growth with strong deposit growth.
Huntington Bancshares has demonstrated exceptional growth compared to peers, growing loans by approximately 9% since the March 2023 banking crisis while many competitors reduced their balance sheets.
The bank has also increased deposits by approximately 14% during the same period, outpacing mid-cap bank peers by about 12 percentage points.
Wolfe Research estimates Huntington has captured approximately 30 basis points of deposit market share since 2022, with the $21 price target implying approximately 11.8 times the firm’s 2027 earnings per share estimate of $1.77. The bank’s revenue grew 5.2% in the last twelve months, with analysts forecasting 15% growth for the current fiscal year.
In other recent news, Argent Institutional Trust Company (AITC) has announced the acquisition of the corporate trust and institutional custody business from The Huntington National Bank. This strategic move aims to enhance AITC’s national presence in corporate trust and custody services. The acquisition includes the transfer of key client relationships and operational infrastructure, with full integration expected in the coming months. Meanwhile, several analyst firms have made adjustments to their outlook on Huntington Bancshares. Jefferies initiated coverage with a Buy rating and a price target of $20, citing strong expected growth in loans and deposits. Deutsche Bank (ETR:DBKGn) upgraded the stock from Hold to Buy, setting a revised price target of $17.50, driven by robust loan growth and strategic initiatives. Truist Securities and DA Davidson both maintained Buy ratings but adjusted their price targets to $17 and $18, respectively, reflecting a more cautious valuation amid recession risks. These recent developments highlight a period of significant activity and strategic adjustments for both AITC and Huntington Bancshares.
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