RBC Capital Reaffirms Outperform Rating for Huntington Bancshares Incorporated - Preferred Stock (HBANM)
Analyst Recommendation: RBC Capital maintains an "Outperform" rating for Huntington Bancshares Incorporated - Preferred Stock (NasdaqGS:HBANM) with a projected price target of $26.38/share, indicating a potential upside of 19.32% from its current price of $22.11/share.
Revenue and Earnings Projections: The projected annual revenue for Huntington Bancshares is estimated at $8,243 million, reflecting a 9.88% increase, with a non-GAAP EPS forecast of 1.76.
Institutional Holdings: There are currently 7 funds reporting positions in HBANM, with total institutional shares remaining stable at 993K, while some funds have decreased their holdings over the last quarter.
ETF Holdings Changes: Notable changes in ETF holdings include PFF reducing its shares by 8.89%, PGX decreasing by 4.85%, and GPRF increasing its shares by 22.76%, indicating varied sentiment among institutional investors.
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Huntington Bank (HBAN) Q4 Earnings Miss Expectations, Stock Declines
- Earnings Report: Huntington Bank's Q4 earnings per share fell short of market expectations, with an 11% revenue growth overshadowed by higher-than-expected expenses, leading to a stock decline that reflects market concerns about future performance.
- Expense Growth: The company anticipates a 10% to 11% increase in expenses for 2026, exceeding investor expectations, partly due to one-time integration costs associated with the Vertex deal, which may impact investor confidence.
- Market Outlook: Despite the expense pressures, Huntington Bank remains optimistic about 2026, projecting revenue growth between 11% and 14%, indicating its competitive position and growth potential in the market.
- Operating Leverage: The bank achieved nearly a 3% increase in operating margins in 2025 and expects to expand margins by 1.5% to 2% in 2026, demonstrating a strong balance between profitability and reinvestment.

Small Banks Thrive with PE Ratios Below 11 Amid Market Optimism
- Banking Resilience: Small and regional banks have demonstrated strong performance after enduring a 500 basis point rate shock, maintaining historical high capital ratios, indicating robust risk resilience and potential for increased profitability in the future.
- PE Ratio Advantage: While money center banks trade at forward PE ratios between 13 and 16, small and regional banks are priced below 11, growing faster, suggesting that investors can achieve higher returns by opting for smaller banks.
- Yield Attractiveness: For instance, Huntington offers a yield three times that of JP Morgan, highlighting the appeal of small banks in terms of yield distribution, which has garnered increased investor interest.
- Rapidly Growing Community Banks: Third Coast Bankshares and South Plains Financial in Texas are among the fastest-growing community banks, priced at or below 11 times forward PE ratios, showcasing their competitive edge and investment potential in the market.






