Huntington Bancshares (HBAN) Stock Forecast & Price Target

Huntington Bancshares demonstrates a positive outlook primarily due to anticipated net interest income growth driven by margin expansion, expected to increase by approximately 10 basis points annually through 2026 and 2027. The bank's strategic focus on key growth markets, particularly through notable acquisitions in rapidly expanding regions like Texas and the Carolinas, positions it to capitalize on demographics that are projected to grow 30% faster than the national average over the next five years. Additionally, the continued improvement in the average FICO score from 760 in 2013 to 782 in 4Q23 indicates an increasingly high-quality consumer base, further supporting the bank's growth potential.

Huntington Bancshares faces a negative outlook primarily due to a deteriorating economic environment that may result in sluggish loan growth and increased credit costs, negatively impacting lending opportunities and margins. The bank's significant indirect auto loan portfolio, which constitutes approximately 10% of total loans, is particularly vulnerable as used car prices decline and the average loan-to-value (LTV) ratio decreases. Additionally, while Huntington is positioned for higher interest rates, prolonged periods without rate cuts by the Federal Reserve could hinder bank valuations, as weaker borrower demand leads to greater risk of credit losses.