Wedbush analyst David Chiaverini has maintained their neutral stance on HBAN stock, giving a Hold rating today.
Geoff Meacham has given his Hold rating due to a combination of factors that suggest Huntington Bancshares is currently valued appropriately relative to its projected financial performance. The bank reported a quarter that met expectations, with trends and guidance for 2024 aligning closely with prior estimates. Although there was a contraction in the net interest margin and a decrease in net interest income, these figures were anticipated, and the guidance for 2024 falls within expected ranges. A decline in noninterest bearing deposits and an increase in nonperforming assets and net charge-offs, primarily driven by commercial real estate, were noted; however, management has set aside reserves for potential office portfolio losses.
The guidance updates provided by the bank for 2024 were mostly consistent with previous expectations, indicating modest growth in net interest income, average loan growth, and average deposit growth. The bank’s net interest margin is predicted to remain stable or improve slightly, depending on interest rate changes. Furthermore, the bank is focused on core noninterest income growth through capital markets, payments, and wealth management, while also guiding for a controlled increase in core noninterest expenses. Despite these positive factors, Meacham maintains a Neutral rating, indicating that the positive aspects of the bank’s outlook are already factored into its current market valuation, leaving little room for an outperformance-based upgrade in the rating.
In another report released today, J.P. Morgan also maintained a Hold rating on the stock with a $15.00 price target.
HBAN’s price has also changed slightly for the past six months – from $11.880 to $12.720, which is a 7.07% increase.
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Huntington Bancshares (HBAN) Company Description:
Huntington Bancshares, Inc. operates as a bank holding company. It provides commercial and consumer banking services, mortgage banking services, automobile financing, recreational vehicle and marine financing, equipment leasing, investment management, trust services, brokerage services, insurance programs, and other financial products and services. The company operates through the following segments: Consumer & Business Banking, Commercial Banking, Commercial Real Estate & Vehicle Finance, Regional Banking & The Huntington Private Client Group, and Home Lending. The Consumer & Business Banking segment provides financial products and services to consumer and small business customers including but not limited to checking accounts, savings accounts, money market accounts, certificates of deposit, investments, consumer loans, credit cards and small business loans. The Commercial Banking segment provides products and services to the middle market, large corporate, and government public sector customers located primarily within its geographic footprint. The segment is divided into following business units: Middle Market, Large Corporate, Specialty Banking, Asset Finance, Capital Markets, Treasury Management, and Insurance. The Commercial Real Estate & Vehicle Finance segment provides products and services include providing financing for land, buildings, and other commercial real estate owned or constructed by real estate developers, automobile dealerships, or other customers with real estate project financing needs, and financing for the purchase of automobiles, light-duty trucks, recreational vehicles and marine craft at franchised dealerships, financing the acquisition of new and used vehicle inventory of franchised automotive dealerships. The Regional Banking and The Huntington Private Client Group segment consists of private banking, wealth & investment management, and retirement plan services. The Home Lending segment originates and services consumer loans and mortgages for customers who are located in primary banking markets. Huntington Bancshares was founded in 1966 and is headquartered in Columbus, OH.
Read More on HBAN:
- Huntington Bancshares Incorporated Declares Quarterly Cash Dividends On Its Common and Preferred Stocks
- Huntington Bancshares says capital priority is funding higher return loan growth
- Huntington Bancshares says executing on strategic growth initiatives
- Huntington Bancshares provides medium-term financial targets
- Huntington Bancshares sees FY24 average loans up 3%-5%
