Analyst bumps Huntington Bancshares stock price target to $17 following a solid Q2

On Monday, RBC Capital maintained an Outperform rating on shares of Huntington Bancshares (NASDAQ:HBAN) and raised the price target to $17.00 from the previous $16.00. The firm's assessment followed a recap of the bank's second-quarter results, which were characterized as solid. The positive outlook is based on Huntington Bancshares' initiatives that are currently driving loan, deposit, and fee income growth.

The bank's second-quarter performance has shown that the strategies implemented to accelerate various financial metrics are gaining traction. The analyst noted that the guidance provided in a June update remains unchanged, indicating a steady trajectory for the company's financial health. Investors can expect to see an increase in net interest income as the year progresses.

Additionally, the report from RBC Capital suggests that the cost growth for Huntington Bancshares is likely to decelerate later in 2024 and continue into 2025. This projection is a key factor in the firm's decision to adjust its estimates and price target for the bank's shares.

The revised price target of $17.00 reflects the confidence RBC Capital has in Huntington Bancshares' ability to maintain its growth momentum. The bank's consistent performance and the reaffirmation of its guidance underscore the positive outlook for its financial future.

In summary, RBC Capital's updated analysis of Huntington Bancshares indicates a robust second quarter, with the bank poised for continued growth in net interest income and a slowdown in expense growth. The firm's maintained Outperform rating and increased price target suggest a favorable view of the bank's financial prospects.

In other recent news, Huntington Bancshares has undergone several significant developments. The company's stock rating was recently adjusted by Piper Sandler from Overweight to Neutral, with the firm also revising its price target for Huntington Bancshares to $11.50. This decision was made in light of recent mid-quarter updates from large banks.

Additionally, UBS reduced its price target for the company to $15, while maintaining a buy rating. The firm also revised its 2024 and 2025 earnings estimates for Huntington Bancshares, reflecting recent economic developments and their impact on rate assumptions.

Meanwhile, Stephens maintained an Equal Weight rating for the company, following the bank's revised 2024 loan growth forecast and increased deposit cost outlook.

In a bullish move, JPMorgan upgraded Huntington Bancshares from Neutral to Overweight, raising its price target to $18.00. These adjustments reflect confidence in the bank's growth potential. The company also reported notable loan and deposit growth during its first-quarter earnings call and expects an acceleration in loan growth, net interest income, and earnings expansion for 2024 and 2025.

Huntington Bancshares announced the appointment of Angie Klett as President of Huntington Insurance, Inc., following the retirement of Mary Beth Sullivan. Furthermore, the company plans to launch two new deposit verticals in 2024, each projected to yield $5 billion in deposits over the medium term.

These are just a few of the recent developments for Huntington Bancshares.

InvestingPro Insights

Following the RBC Capital's optimistic outlook on Huntington Bancshares, a closer look at the real-time data from InvestingPro reveals additional insights. With a market capitalization of $21.58 billion and a healthy P/E ratio of 14.02, Huntington Bancshares is positioned as a solid player in the banking sector. Notably, the bank has shown a strong return over the last month with a 17.66% price total return, bolstering investor confidence and mirroring RBC Capital's positive sentiment.

InvestingPro Tips indicate that Huntington Bancshares has maintained dividend payments for an impressive 54 consecutive years, underlining its commitment to returning value to shareholders. Moreover, the bank is trading near its 52-week high, currently at 99.13% of this peak, which could signal a resilient performance in the market. For investors looking for more in-depth analysis, InvestingPro offers additional tips on Huntington Bancshares, which can be accessed with the promo code PRONEWS24 for up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription.

While some analysts have revised their earnings downwards for the upcoming period, the bank's historical profitability and the anticipation of profit this year should not be overlooked. As of the last twelve months, the bank has been profitable, and this trend is predicted to continue. For those interested in a comprehensive understanding of Huntington Bancshares' financial health, InvestingPro provides a total of eight tips, including those mentioned here, to help investors make informed decisions.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.