On Tuesday, Truist Securities initiated coverage on shares of Huntington Bancshares (NASDAQ:HBAN), trading on the NASDAQ under the ticker HBAN, with a positive outlook. The firm set a Buy rating for the bank's stock and established a price target of $19.00. According to InvestingPro data, analyst targets range from $14.50 to $22.00, with the stock currently trading near Fair Value levels. Six analysts have recently revised their earnings expectations upward for the upcoming period.
Brian Foran, an analyst at Truist Securities, praised Huntington for its strong foothold in its primary markets of Ohio and Michigan, and its strategic expansion into new growth areas such as North Carolina, South Carolina, and Texas. Foran highlighted the bank's consistent performance, noting its diversified fee income and sustained mid-teens return on tangible common equity (ROTCE) over recent years. The bank's strong market position is reflected in its impressive 31.32% price return over the past six months, as tracked by InvestingPro.
Despite not engaging in share repurchases since 2022, Foran believes Huntington has significant potential for capital deployment in the coming years. The bank's accumulation of other comprehensive income (AOCI) is expected to provide financial flexibility, along with the development of six new specialty business verticals and market share growth in Texas and the Carolinas. Notably, the bank has maintained dividend payments for 54 consecutive years, currently offering a 3.75% yield.
Huntington Bancshares, with a market capitalization of $24 billion and $201 billion in assets, is headquartered in Columbus (WA:CLC), Ohio. The bank enjoys a dominant position in its home market, boasting a 43% deposit market share in Columbus and 12% in Cleveland. Its largest loan category is commercial and industrial (C&I) lending, and it also maintains a substantial consumer auto loan portfolio, which stood at $14 billion as of the third quarter of 2024.
In other recent news, Huntington Bancshares reported robust Q3 2024 results, with earnings per common share of $0.33 and a return on tangible common equity of 16.2%.
The bank's loan growth accelerated by 3.1% year-over-year, and deposits increased by $8.3 billion. Evercore ISI and JPMorgan (NYSE:JPM) maintained their positive outlook on the bank, raising their price targets to $20.00, while Piper Sandler held an Underweight rating despite increasing its price target to $15.00.
Citi also reaffirmed its Buy rating on Huntington Bancshares, anticipating benefits from fixed asset repricing and the bank's strategy to manage interest rate impacts. These factors are projected to lead to a record net interest income by 2025 and surpass consensus expectations. However, a slight decline in net interest margin to 2.98% was noted.
In other developments, Huntington Bancshares expanded its branch network into the Carolinas and enhanced its merchant acquiring capabilities.
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