Huntington Bancshares Gains Analyst Favor: Price Target Boosted Amid Strong Outlook
Regional banking heavyweight Huntington Bancshares Incorporated (NASDAQ: HBAN) received a vote of confidence from Wall Street this week, with Truist Securities analyst Brian Foran increasing his price target on the stock to $21 from $20, while maintaining a Buy rating. The move comes on the heels of the company's stronger-than-anticipated fourth-quarter results.
Foran's adjustment reflects optimism about the bank's near-term prospects, particularly its net interest income (NII) trajectory. However, the analyst also struck a note of caution, trimming the firm's fiscal 2026 earnings per share (EPS) forecast by 7% to $1.70, citing a higher expected expense base.
The analyst update aligns with a bullish internal forecast from the Columbus, Ohio-based bank. According to a recent Reuters report, Huntington expects its interest income to hit a record level in 2026. This optimism is fueled by a combination of faster loan growth, widening margins, and a more favorable interest rate environment. As the Federal Reserve has begun to cut rates, borrowing activity across the sector has gained momentum, while easing deposit costs are simultaneously improving profitability outlooks for banks like Huntington.
On a standalone basis, Huntington projects its full-year net interest income will grow between 10% and 13%. The bank reported $6.06 billion in NII for 2025. Furthermore, its pending $7.4 billion acquisition of Cadence Bank, announced in October, is expected to add between $1.85 billion and $1.90 billion to its annual NII once integrated. The bank also anticipates average loan growth of 11-12% this year, with deposits projected to rise 8-9%.
Huntington, which operates primarily through the Huntington National Bank, serves a broad base of consumers, small and mid-sized businesses, and institutional clients. Its recent performance and outlook have also earned it a spot on several analyst lists of recommended low-risk dividend stocks.
Market Voices:
"The price target increase is a logical step after a solid quarter," commented Michael Rivera, a portfolio manager at Great Lakes Capital. "Huntington is executing well in a stabilizing environment. The Cadence acquisition, while a near-term integration challenge, strategically expands their footprint in attractive Southeastern markets."
"This is classic 'good news, bad news' from analysts," said Sarah Chen, an independent financial blogger. "Yes, the target went up a dollar, but they also cut future earnings estimates significantly. It feels like they're patting management on the back with one hand while taking money off the table with the other. The 'higher expense outlook' they mention is a major red flag for profitability."
"For income-focused investors, the combination of a reliable dividend and exposure to a regional banking recovery story is compelling," noted David Wells, a retired bank executive and market commentator. "Huntington's guidance suggests they are navigating the rate cycle transition better than many peers."
Disclosure: This is an independent financial news analysis. The author holds no position in HBAN.