Huntington Bancshares (HBAN) Stock Forecast & Price Target

The positive outlook for Huntington Bancshares's stock is supported by anticipated continued margin expansion, expected to reach approximately 10 basis points in both 2026 and 2027, facilitating growth in net interest income. Strategic acquisitions and expansion efforts in high-growth regions like Texas and the Carolinas are expected to enhance market density, positioning the bank to benefit from these areas projected to grow 30% faster than the national average over the next five years. Additionally, the increasing average FICO score among consumers, rising from 760 in 2013 to 782 in 4Q23, reflects Huntington's success in tiering up its consumer base, which should further drive growth and earnings momentum.

Huntington Bancshares faces a negative outlook due to a deteriorating economic environment contributing to sluggish loan growth and a challenging interest rate landscape that could impair lending opportunities and compress margins. The bank's large indirect auto loan portfolio, constituting 10% of total loans, is particularly vulnerable as falling used car prices pose additional risks to credit quality and revenue. Furthermore, the acquisitions of FirstMerit and TCF Financial, while initially accretive, have led to volatility and raised concerns about future deal-making, further complicating its capital-building efforts amidst higher credit costs.