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Huntington Bancshares (HBAN) drew attention after subsidiary Huntington Securities launched an equity research platform for Huntington Capital Markets clients, initially covering REITs and Utilities with two senior analysts leading the effort.
See our latest analysis for Huntington Bancshares.
At a share price of $17.85, Huntington Bancshares has drifted slightly over the past week but still shows positive momentum, with a 30-day share price return of 1.88% and a 90-day share price return of 7.08%. Its 1-year total shareholder return of 11.83% and very large 3-year total shareholder return indicate that longer term holders have seen significantly stronger outcomes than recent traders.
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Huntington Bancshares is building out research capabilities while posting solid recent shareholder returns, which points to a robust underlying business. The next step is to see whether that strength is already fully reflected in the share price.
Most Popular Narrative: 12.2% Undervalued
The most followed narrative for Huntington Bancshares points to a fair value of $20.34, above the recent $17.85 share price, and leans heavily on future execution in key growth markets.
The expansion into Texas via the Veritex acquisition, combined with ongoing organic growth in high-population-growth markets (Texas, North Carolina, South Carolina), is set to substantially increase Huntington’s addressable market and fee-generating opportunities, likely driving higher revenue and earnings growth as these regions mature.
Curious what sits behind that $20.34 fair value for Huntington Bancshares? The narrative hinges on compounding growth in revenue, earnings and margins, plus a future earnings multiple that assumes the bank earns a premium against many peers. Want to see exactly which financial milestones need to be hit for that view to hold up?
Result: Fair Value of $20.34 (UNDERVALUED)
Have a read of the narrative in full and understand what’s behind the forecasts.
However, this Huntington Bancshares narrative still leans on smooth execution of acquisitions and expansion, while integration missteps or higher regulatory costs could quickly challenge those assumptions.
Find out about the key risks to this Huntington Bancshares narrative.
