Update shared on 30 Nov 2025
Analysts have adjusted their price targets for Cadence Bank following the announced sale to Huntington Bancshares, with estimates now ranging from $40 to $47. This reflects the company's upcoming merger and the anticipated strategic realignment within the sector.
Analyst Commentary
Following the announcement of Cadence Bank's sale to Huntington Bancshares, analyst reactions have highlighted both positive opportunities and emerging risks associated with the deal. The reassessment of ratings and price targets reflects a mix of optimism and caution regarding the combined institution's future prospects.
Bullish Takeaways- Bullish analysts see the merger as a strategic fit, particularly enhancing Huntington's expansion in the Texas and Southeast markets.
- Some have upgraded Cadence Bank's outlook and adjusted price targets upward in anticipation of synergies from the integration.
- The transaction is viewed as supporting future growth potential for shareholders and aligning value expectations closer to Huntington's.
- Continued support for the merger signals confidence in management’s execution and the combined bank's ability to achieve operational efficiencies.
- Bearish analysts have shifted to a more neutral stance following the announcement, reflecting reduced conviction in further near-term outperformance for Cadence Bank shares.
- Some price targets were lowered, citing uncertainty around the all-stock structure and the timeline for deal completion.
- There are concerns over potential integration risks, particularly during the execution phase leading up to the planned closing in early 2026.
- Cautious analysts are mindful of possible dilution or execution missteps that could hinder value realization for current shareholders.
What's in the News
- Huntington Bancshares plans to acquire Cadence Bank for $7.4 billion in stock. Huntington CEO Steve Steinour described the deal as an "important next stage" and suggested the possibility of additional transactions in the future (The Wall Street Journal).
- The definitive acquisition agreement sets an exchange ratio of 2.475 Huntington shares for each Cadence share. After the merger, the combined company is expected to be owned 77% by Huntington shareholders and 23% by Cadence shareholders (Key Developments).
- Cadence Bank CEO James D. "Dan" Rollins III will join Huntington as non-executive Vice Chairman and director. Two more members from Cadence will also join the board (Key Developments).
- The transaction is anticipated to close in the first quarter of 2026. The combined bank will operate under the Huntington brand, and there are no plans for branch closures (Key Developments).
- Cadence Bank has started a collaboration with Magnusmode to provide digital banking guides designed to support inclusive customer experiences (Key Developments).
Valuation Changes
- Fair Value: Remains unchanged at $42.70 per share, indicating stable expectations for the company's intrinsic worth.
- Discount Rate: Decreased marginally from 6.956% to 6.956%. This reflects slightly improved risk assessment by analysts.
- Revenue Growth: Holds steady at approximately 11.41%, showing consistency in future revenue projections.
- Net Profit Margin: Essentially unchanged at 31.88%, suggesting sustained expectations for profitability.
- Future P/E: Dropped modestly from 12.94x to 12.81x. This signals a slightly reduced earnings multiple being assigned post-announcement.
Disclaimer
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