Huntington Bancshares Incorporated HBAN shares received a boost today as BofA Securities analyst Ebrahim H. Poonawala upgraded the stock to Buy and raised the price target to $16.
Poonawala’s optimism stems from Huntington Bancshares’ ability to navigate various economic scenarios effectively. The analyst foresees robust revenue growth in the coming years, backed by strategic investments, a strong market presence, and exceptional operational performance.
The analyst anticipates a significant uptick in revenue growth, especially in the auto floor plan/inventory finance sector, leading to a substantial acceleration in growth by 2025, surpassing industry peers.
Within the financial forecast, Poonawala highlights the positive impact of $13 billion-15 billion in fixed-rate loan repricing, providing a favorable tailwind to net interest income growth over the next few fiscal years.
Revised earnings per share (EPS) estimates for the upcoming years reflect the enhanced outlook, with Poonawala raising expectations for FY24, FY25, and FY26, on the back of projected growth in net interest income.
Notably, the positive sentiments towards Huntington Bancshares come after a challenging fourth quarter in FY23 when the company reported a decline in net interest income. However, CEO Steve Steinour’s confidence in the company’s potential for 2024 has bolstered investor confidence.
For investors looking to capitalize on this optimistic outlook, exposure to Huntington Bancshares can be gained through IShares U.S. Regional Banks ETF and SPDR S&P Regional Banking ETF.
On the market front, HBAN shares showed a promising uptrend, closing at $13.98, marking a 2.83% increase on the last trading day.
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