Huntington Bancshares (HBAN) Stock Forecast & Price Target

Huntington Bancshares is poised for continued growth, as management projects an expansion of net interest margins by approximately 10 basis points annually for both 2026 and 2027, driven by fixed asset repricing and lower deposit costs. The bank's strategic focus on organic growth and expansion into rapidly growing markets, notably in Texas and the Carolinas, positions it well for future earnings momentum, particularly as these regions are anticipated to grow at rates 30% faster than the national average over the next five years. Additionally, an increasing average FICO score, rising from 760 in 2013 to 782 in 4Q23, reflects a strengthening consumer base, further supporting a positive outlook on Huntington Bancshares’s financial health and performance.

The financial outlook for Huntington Bancshares is clouded by several fundamental challenges, particularly in the context of a deteriorating economic environment that could lead to sluggish loan growth and heightened credit costs. The bank's large indirect auto loan portfolio, which comprises 10% of total loans, is increasingly strained by falling used car prices, further complicating its lending opportunities and profit margins. Additionally, while Huntington's asset-sensitive balance sheet may benefit from higher interest rates, sustained periods without rate cuts could dampen overall bank valuations and prompt borrowers to refrain from seeking loans, exacerbating the risks to the bank's financial stability.