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Piper Sandler downgrades Huntington Bancshares stock on weaker performance

EditorEmilio Ghigini
Published 14/06/2024, 09:46

On Friday, Piper Sandler adjusted its stance on Huntington Bancshares (NASDAQ:HBAN), a company listed on NASDAQ:HBAN, altering its stock rating to Neutral from its previous Overweight position. Additionally, the firm revised its price target for Huntington Bancshares to $11.50, a decrease from the former $13.50 mark.

The reevaluation by Piper Sandler follows recent mid-quarter updates from large banks. The firm clarified that its decision is not driven by concerns over significant issues such as risk or capital adequacy. Piper Sandler also expressed a high regard for the management team at Huntington Bancshares.

Despite the absence of major red flags, Piper Sandler anticipates that the stock may not maintain its early-year momentum. The firm suggests that investors could see a phase of relatively weaker performance from the bank's shares in the upcoming period.

The price target adjustment to $11.50 from $13.50 reflects Piper Sandler's revised expectations for Huntington Bancshares' stock performance. This new target is set in the context of the bank's recent developments and the broader banking sector's mid-quarter financial updates.

Piper Sandler's updated outlook for Huntington Bancshares is now aligned with a more neutral perspective, indicating a shift from the previously more bullish view that warranted an Overweight rating. The firm's analysis points towards a more cautious approach to the bank's stock amid the current financial landscape.

In other recent news, financial firm UBS has adjusted its financial outlook for Huntington Bancshares, reducing the price target to $15 from the previous $16, while maintaining a buy rating. This revision is due to recent economic developments and their impact on rate assumptions.

Meanwhile, RBC Capital maintained its Outperform rating on Huntington Bancshares with a steady price target of $16.00. Stephens also held steady with an Equal Weight rating and a $15.00 price target for the company.

On the other hand, JPMorgan (NYSE:JPM) showed a bullish stance, upgrading Huntington Bancshares from Neutral to Overweight and raising its price target to $18.00. These adjustments reflect confidence in the bank's growth potential.

Huntington Bancshares 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.

The bank announced the appointment of Angie Klett as President of Huntington Insurance, Inc., following the retirement of Mary Beth Sullivan. Additionally, the company has 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

Amidst Piper Sandler's reassessment, Huntington Bancshares (NASDAQ:HBAN) shows a mixed financial landscape according to real-time data from InvestingPro. With a market capitalization of $17.9 billion, the company is trading at a P/E ratio of 11.01, which aligns with its performance over the last twelve months as of Q1 2024. Despite a challenging revenue growth trend, with a decrease of 5.79% over the last twelve months and a more significant quarterly drop of 10.35%, Huntington has maintained a strong operating income margin of 36.92%. This could signal operational efficiency in the face of top-line pressures.

InvestingPro Tips reveal that the stock has recently entered oversold territory, suggesting potential for a rebound. Additionally, the company's commitment to shareholder returns is evident, having upheld dividend payments for 54 consecutive years, with a notable dividend yield of 5.02%. Analysts remain optimistic about profitability for the year, a sentiment supported by the company's performance over the past year, which includes a 20.09% price total return.

For investors considering Huntington Bancshares, these insights could provide a deeper understanding of the company's current position and future prospects. To explore more InvestingPro Tips and metrics, visit https://www.investing.com/pro/HBAN and remember to use the coupon code PRONEWS24 for an additional 10% off a yearly or biyearly Pro and Pro+ subscription. There are 5 additional InvestingPro Tips available that could offer further guidance for your investment decisions.

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

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