On Wednesday, Hancock Whitney (NASDAQ:HWC) shares received an updated price target from DA Davidson, with the firm raising the target to $63.00 from $57.00, while reiterating a Buy rating on the stock.
The bank's second-quarter performance highlighted consistent funding costs and an increase in net interest income and net interest margin (NIM), alongside low credit costs.
The updated 2024 guidance from Hancock Whitney presented a steady year-over-year loan balance. However, the pre-provision net revenue (PPNR) forecast remains unchanged with a slight decline of 1% to 2%. This outlook is supported by an anticipated increase in fee income and a slower rise in expenses.
The expectation of a potential Federal Reserve easing has been factored into the outlook, which, along with manageable credit costs, could contribute to a further expansion in the bank's multiple. Currently, Hancock Whitney is trading at a moderate 10 times its estimated 2025 earnings.
The analyst's statement highlighted the bank's solid quarterly results, which have laid the groundwork for the rating affirmation and price target increase. According to the analyst, "Hancock Whitney's 2Q results underscored the company's stabilizing funding costs, Q/Q net interest income growth/NIM expansion, and low credit costs. While the 2024 guidance update included flat Y/Y loan balances, the PPNR outlook (-1%-2%) was unchanged, supported by stronger fee income growth and slower expense growth."
In conclusion, DA Davidson sees Hancock Whitney as a solid investment, maintaining its Buy rating and lifting its price target to $63 from the previous $57, reflecting confidence in the bank's financial stability and growth potential.
In other recent news, Citi has maintained its Buy rating on Hancock Whitney and increased the share price target to $61, citing a positive outlook for net interest margin expansion and profitability.
DA Davidson also reaffirmed its Buy rating on Hancock Whitney, with a stable price target of $57, highlighting its ability to manage funding costs and drive positive revenue growth. On the other hand, Truist Securities reduced its share price target to $46, maintaining a Hold rating and expressing caution about the bank's potential for limited growth.
In another development, Citi initiated a 90-day upside catalyst call on Hancock Whitney, signaling potential stock performance in the near term. Meanwhile, Stephens maintained an Equal Weight rating and a $50 share price target for Hancock Whitney, following the company's first-quarter earnings report that surpassed consensus forecasts.
These recent developments underline the attention Hancock Whitney has been receiving from various analyst firms. The company's financial performance, strategic approach to pricing, and growth initiatives appear to align with a stable financial outlook.
InvestingPro Insights
Recent data from InvestingPro shows that Hancock Whitney (NASDAQ:HWC) is demonstrating financial robustness with a commendable track record and positive market movements. With a market capitalization of $4.65 billion and a P/E ratio that has remained steady at around 12.53 over the last twelve months as of Q1 2024, the bank is positioned within a reasonable valuation framework. An InvestingPro Tip highlights the significant return over the last week, with a 12.77% price total return, underscoring the market's positive reception to the company's performance.
Moreover, the bank's commitment to shareholder value is evident through its maintained dividend payments for an impressive 37 consecutive years, coupled with a recent dividend growth of 33.33%. This commitment, alongside a strong dividend yield of 2.98%, suggests a reliable income stream for investors. Additionally, the strong price total return over the last month and three months, at 19.82% and 26.97% respectively, reflects the stock's robust momentum, aligning with DA Davidson's optimistic outlook.
For investors seeking more comprehensive analysis, InvestingPro offers additional insights and tips for Hancock Whitney. Utilizing the coupon code PRONEWS24, readers can receive up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription, providing access to a wealth of in-depth financial data and expert evaluations. With 5 more InvestingPro Tips available, investors can deepen their understanding of Hancock Whitney's market position and future prospects.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.