Texas And Carolinas Expansion Will Unlock Digital Banking Opportunities

Huntington Bancshares' analyst price target saw a modest adjustment, decreasing from $19.77 to $19.63 per share. Analysts cited a mix of solid recent results, raised loan growth guidance, and evolving expectations for revenue and profit margins in their outlook.

Analyst Commentary

Recent assessments from Street analysts have highlighted both positive drivers and areas for caution regarding Huntington Bancshares' performance and valuation. Many recognize the company's strong operational execution and growth trajectory, while also remaining attentive to variable outlook factors that could influence future performance.

Bullish Takeaways

• Bullish analysts note Huntington's robust loan growth, with raised guidance now targeting approximately 8% average loan growth. This underscores strong demand in both legacy and new markets.
• Revisions to net interest income projections, especially an increased margin guide, signal confidence in the company's earnings power through 2025 and 2026.
• Solid quarterly results and sequential improvements in credit metrics, particularly benign credit quality and reductions in criticized assets, reinforce faith in Huntington's prudent risk management.
• Recent meetings with management have strengthened the view that Huntington's core Midwest business momentum is undervalued. Superior growth prospects compared to peers are seen as driving potential for a higher equity valuation.

Bearish Takeaways

• Some analysts have tempered their price targets, citing evolving expectations for revenue and profit margins as reasons for heightened caution regarding future upside.
• Despite positive loan growth and margin guidance, there is an implicit caution around sustained operating leverage, as expectations hinge on continued benign credit and strong execution.
• Incremental increases in earnings projections, while positive, remain modest and may not fully account for broader economic uncertainties that could pressure bank performance going forward.

What's in the News

• Increased earnings guidance for 2025, raising full-year net interest income outlook to 10% to 11% from the prior range of 8% to 9%, fueled by strong loan growth and higher net interest margin. Expectations for revenue were also raised. (Key Developments)
• Huntington Bank partnered with True Link to launch innovative family banking tools, offering dedicated Caregiver and Teen Banking integrated into Huntington checking accounts. The program enables families to manage finances more safely while helping to reduce fraud and unwanted spending. (Key Developments)
• As of mid-2025, the company reported no share repurchases under its authorized buyback program, with zero shares repurchased during the latest reported period. (Key Developments)

Valuation Changes

• Consensus Analyst Price Target: Decreased slightly from $19.77 to $19.63 per share, reflecting a modest downward revision.
• Discount Rate: Increased slightly from 7.25% to 7.30%, suggesting a minor upward adjustment in risk assumptions.
• Revenue Growth: Improved from 10.90% to 11.15%, indicating positive momentum in projected top-line expansion.
• Net Profit Margin: Declined from 24.12% to 22.41%, representing a measurable decrease in expected profitability.
• Future P/E: Edged up from 15.11x to 15.57x, signaling a small increase in the anticipated valuation multiple applied to forward earnings.