Is Huntington Bancshares (HBAN) A Bargain On Bank Of America’s Downgrade?
Huntington Bancshares (HBAN) is back in focus after Bank of America cut its rating to Neutral, pointing to pressure on net interest income and skepticism around management’s 2027 earnings per share ambitions.
See our latest analysis for Huntington Bancshares.
At a share price of $17.04, Huntington Bancshares has seen short term momentum cool, with the 30 day share price return down 5.91% and the year to date share price return down 2.52%. However, the 1 year total shareholder return of 10.22% and 3 year total shareholder return of 58.84% highlight a much stronger longer term picture.
If Bank of America’s rating change has you reassessing your watchlist, this can be a good moment to broaden your search and uncover 18 top founder-led companies
Huntington Bancshares now sits at $17.04 after a cooler run and a fresh downgrade that questions its earnings path. Do the current valuation signals still leave the balance of risk and reward on the buyers’ side?
Most Popular Narrative: 16.2% Undervalued
At $17.04, the most followed narrative on Huntington Bancshares points to a higher fair value of $20.34, built on an earnings and margin expansion story.
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 this Huntington Bancshares story is really banking on? It leans heavily on faster revenue, fatter margins and a richer future earnings multiple. The full narrative spells out how those moving pieces line up.
Result: Fair Value of $20.34 (UNDERVALUED)
Have a read of the narrative in full and understand what's behind the forecasts.
However, Huntington Bancshares still faces meaningful risks if the Veritex expansion stumbles or digital competitors erode fee income and pressure margins more than analysts currently expect.
Find out about the key risks to this Huntington Bancshares narrative.
Another View: What Huntington Bancshares’ P/E Is Telling You
The SWS fair value model suggests Huntington Bancshares is undervalued by 48.3%. Yet the stock trades on a P/E of 15.3x, which is higher than both the US Banks industry at 11.9x and its peer average of 13.1x, while the fair ratio sits at 19.5x. That mix of discount and premium raises a simple question: Is the market offering a margin of safety or already pricing in much of the good news?
See what the numbers say about this price — find out in our valuation breakdown.
Next Steps
With sentiment clearly split between risks and rewards for Huntington Bancshares, now is a good time to review the data and form your own view using 4 key rewards and 2 important warning signs
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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