Huntington Bancshares (HBAN) Stock Forecast & Price Target

Huntington Bancshares is poised for a positive trajectory with anticipated net interest margin (NIM) expansion of at least 10 basis points annually starting in 2026, driven by fixed asset repricing and robust loan growth. The bank’s strategic acquisitions, particularly in rapidly growing Texas markets, are expected to further enhance its presence, as these regions are projected to grow 30% faster than the national average over the next five years. Additionally, improvements in asset quality metrics and a rising average FICO score reflect Huntington's commitment to a stronger consumer base and a de-risked loan portfolio, which supports a solid financial foundation.

Huntington Bancshares faces potential challenges stemming from a declining economic outlook, which could pressure asset quality and increase nonperforming assets, particularly if a recession occurs. The company's significant exposure to a large indirect auto loan portfolio, projected to decline as used car prices fall, raises concerns about overall loan performance and the risk of higher credit costs. Additionally, the company's history of acquisitions introduces operational and financial risks, while economic conditions and interest rate fluctuations may further squeeze net interest margins and hinder revenue growth.