HWC Stock Forecast & Price Target

Hancock Whitney is well positioned for growth and value creation as they continue to expand their presence in key markets, such as the strong growth Orlando MSA. The pending acquisition of One Florida Bank is expected to generate strong financial results and provide strategic benefits for the company's expansion plans. With a projected ROA of 1.46%, efficiency ratio of 53.3%, and strong capital generation, the company is expected to see high single-digit EPS accretion and cost savings of ~40%. The company's commitment to returning capital to shareholders through share repurchases and an increasing dividend also provides additional value and confidence in the company's future outlook.

Hancock Whitney is facing weak loan growth, as seen in their first quarter results where loan growth was only 0.6%. This was hindered by unexpected prepayments, causing lower than expected net interest income. Despite management's reassurance of mid-single digit loan growth, their previous acquisition strategy to drive loan growth has not been as successful. Coupled with a slightly smaller balance sheet, this will likely result in marginally lower estimates and potential underperformance compared to industry peers.