Texas And Carolinas Expansion Will Unlock Digital Banking Opportunities

Huntington Bancshares' analyst price target has increased slightly from $19.42 to $19.77, as analysts cite improved net interest margin guidance, modestly higher loan growth, and ongoing confidence in the bank's profit outlook.

Analyst Commentary

• Bullish analysts continue to raise price targets for Huntington Bancshares, with several now expecting shares to reach or exceed $20.
• There is a clear consensus that the bank's improved net interest margin guidance and slightly higher loan growth are key factors driving optimism about near-term profit and revenue growth.
• Momentum in core Midwest operations and confidence in outperforming larger regional peers are cited as reasons Huntington’s valuation could rise further, especially if expansion trends continue. Several analysts also note investor interest in regional banks as a supportive factor.
• Several expect stability or improvement in the company’s EPS trajectory over the next year, which, combined with ongoing interest in regional banks, could support upward stock momentum.

• Some bearish analysts see lingering uncertainty around the broader economic backdrop, including trade policy risks and potential changes in consumer health, which could impact credit costs.
• Despite positive loan growth and profitability trends, there is caution that large-cap bank stocks, including Huntington, may find their performance constrained by already elevated valuations and moderate underlying fundamentals.
• The potential for regulatory shifts and capital requirement reductions may provide some benefit, but near-term range-bound trading is expected as markets await clearer signs of structural growth or changes in macroeconomic conditions.

What's in the News

• Huntington Bank and True Link have partnered to launch industry-first family banking solutions. They are introducing dedicated Caregiver and Teen Banking features that integrate True Link’s technology directly into Huntington checking accounts. (Key Developments)
• These new banking tools allow caregivers to set spending limits and block transactions linked to scams or high-risk merchants. This provides greater financial safety for vulnerable users. (Key Developments)
• Research commissioned by Huntington and conducted by The Harris Poll highlights that 86% of Americans managing someone else’s finances would benefit from such banking tools, which underlines a significant demand. (Key Developments)
• The collaboration aims to help underserved segments such as aging parents, people with disabilities, teens, and those in recovery. Huntington seeks to strengthen long-term customer loyalty and drive new growth. (Key Developments)
• No share repurchases were made by Huntington Bancshares under its recently completed share buyback tranche covering April to June 2025. (Key Developments)

Valuation Changes

• Consensus Analyst Price Target: The fair value estimate has risen slightly from $19.42 to $19.77 per share.
• Discount Rate: The discount rate used in valuation models has decreased modestly from 7.27% to 7.25%, which reflects lower perceived risk or cost of capital.
• Revenue Growth: Projected revenue growth has declined marginally from 11.17% to 10.90%.
• Net Profit Margin: The profit margin expectation has improved, increasing from 23.77% to 24.12%.
• Future P/E: The projected future price-to-earnings ratio has edged up from 14.96x to 15.11x.