Huntington Bancshares (HBAN) Stock Forecast & Price Target

Huntington Bancshares demonstrated solid financial performance with a sequential increase in net interest income of 3.3% to $1.395 billion, supported by a slight margin improvement to 3.03%. The bank's period-end loans grew by 2.9% to $130 billion, largely driven by robust growth in commercial and auto lending, along with a 2.6% rise in deposits to $162.4 billion across most categories. Additionally, the wealth management segment continued to show impressive growth, expanding by 26% and highlighting Huntington's potential for further development in cross-selling and deepening relationships with advisory households.

Huntington Bancshares is facing several headwinds that contribute to a negative outlook, including an anticipated 2% to 3% decrease in net interest income for the first quarter due to margin pressure and lower seasonal fees, along with a higher expense outlook that impacts pre-provision net revenue. The company's yield on earning assets has also declined by 20 basis points, reflecting reduced loan and security yields, which may further strain profitability. Additionally, a challenging economic environment could lead to sluggish loan growth and increased credit costs, exacerbating these financial pressures.