NEW YORK, July 27, 2026, 13:05 EDT
- Huntington stock dropped 1.1%, closing at $17.18 amid heavy trading on Monday.
- Bank of America NYSE:BAC lowered its rating on HBAN to Neutral and decreased its price target to $18.50.
- The latest average target price from nine recent forecasts stands at $19.78, representing a premium of roughly 15% over the current share price.
Shares of Huntington Bancshares Incorporated NASDAQ:HBAN were down 1.1% at $17.18 just before 1 p.m. EDT, trading close to the session’s low.
Bank of America NYSE:BAC analyst Ebrahim Poonawala lowered his rating on the bank to Neutral from Buy. He also reduced his price target to $18.50, down from $20.
The shift underscores a significant gap between interest income and earnings. While net interest income climbed 40% from the previous year, adjusted earnings per share advanced by just approximately 3%.
Net income rose by 36% to $727 million. However, reported earnings per share fell by a cent to $0.33. Acquisition-related expenses amounted to $152 million before tax.
HBAN underperformed against some regional rivals. Fifth Third Bancorp NASDAQ:FITB slipped 0.9%. KeyCorp NYSE:KEY and Regions Financial NYSE:RF were both down roughly 0.6%.
Poonawala noted Huntington was “clearly not immune” to net-interest-income headwinds. BofA flagged an approximate 2% miss on quarterly NII. The firm said NII for 2026 may end up slightly under the lower end of the guidance range at 39%. TipRanks
Latest target revisions reflect significant divergence. The implied upside is calculated from the $17.18 intraday price.
| Firm and analyst | Latest stance | Target | Implied upside, preliminary |
|---|---|---|---|
| Bank of America, Ebrahim Poonawala | Neutral, moved from previous rating | $18.50 | 7.7% |
| Baird, David George | Outperform | $21.00 | 22.3% |
| Morgan Stanley NYSE:MS, Manan Gosalia | Equal Weight, revised down | $19.00 | 10.6% |
| D.A. Davidson, Peter Winter | Buy | $22.00 | 28.1% |
| Jefferies Financial Group NYSE:JEF, David Chiaverini | Hold | $18.00 | 4.8% |
An initial tally of nine targets from July 23 to July 27 arrives at $19.78, suggesting an upside potential of approximately 15%. The most conservative target points to an increase of under 5%.
The overall performance is still uneven. Average loans climbed 42% from a year earlier to $189.3 billion. Average deposits were up 37%. These totals reflect the impact of the Cadence and Veritex acquisitions.
Deposits increased by $18.8 billion sequentially, compared with $15.0 billion in loans. This calculation results in $3.8 billion of extra funding growth.
However, the cost of funding increased. Net interest margin decreased by three basis points to 3.21%. Management projected a net interest margin in the low-3.20% range for the third quarter and expects mid-to-high 3.20% for the fourth quarter.
Chief Executive Steve Steinour stated, “By the fourth quarter, the full earnings power of these partnerships will be clearly evident.” Huntington Bancshares Incorporated
Bulls continue to find reasons for optimism. Adjusted return on tangible common equity stood at 17.5%. Tangible book value increased by 6% to $9.65 per share.
HBAN is trading at roughly 1.78 times tangible book value, according to initial estimates. The stock’s trailing price-to-earnings ratio stood at approximately 13.2.
Credit stayed under control, though imperfections persisted. Net charge-offs accounted for 0.25% of average loans. The nonperforming-asset ratio increased by 13 basis points to reach 0.85%. CET1 capital declined by 20 basis points to 10.0%.
The following earnings test is set for October 22. Investors are expected to focus on evidence of margin recovery and identifiable acquisition savings.
Risks: A delayed recovery in margins, increased deposit expenses, or an uptick in problematic loans may push back the expected improvement in the fourth quarter. Swifter cost reductions or gains in fee income have the potential to boost results.
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