In a report released yesterday, Ebrahim Poonawala from Bank of America Securities reiterated a Buy rating on Huntington Bancshares (HBAN – Research Report), with a price target of $19.00.
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Ebrahim Poonawala has given his Buy rating due to a combination of factors that highlight Huntington Bancshares’ strategic positioning and growth potential. The company has made substantial investments to build a banking franchise capable of achieving superior growth, with loan growth expected to be twice the GDP rate and significant fee income prospects. The leadership under CEO Steve Steinour has been pivotal in expanding geographically and diversifying revenue streams, all while maintaining efficient operations and strong risk management.
Furthermore, Huntington’s stock valuation aligns with its regional bank peers, despite its above-average growth outlook. The company aims for a 6-9% growth in pre-provision net revenue and a return on tangible common equity of 16-17%, which is appealing to investors. Huntington’s unique business model combines the stability of a regional bank with the agility of a growth-focused entity, making it a compelling investment opportunity provided the management executes its strategy effectively.
Based on the recent corporate insider activity of 216 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of HBAN in relation to earlier this year.