Morgan Stanley has once again rated Huntington Bancshares (NASDAQ: HBAN) as Overweight and left its price target at $21.00, continuing to list the bank as one of its preferred holdings despite a recent downward revision to the companys 2027 earnings outlook. The $21.00 target implies roughly 17% upside from the stocks current level of $17.93, and market data indicates the shares trade marginally below what InvestingPro deems fair value.
Huntington adjusted its 2027 EPS guidance lower, moving from $2.00 to a narrowed range of $1.90 to $1.93. Management attributed the adjustment in part to a lower provision for acquired assets while setting loftier revenue goals, noting that some expected synergies will be reinvested to support revenue initiatives. Over the trailing twelve months, InvestingPro data shows Huntington delivered solid revenue growth of 10.88%.
Those changes have shifted the timeline for key stock catalysts. Where investors and analysts previously expected more immediate progress in the first quarter, the companys updated targets place the burden of proof into mid-year. Huntington now needs to show persistent revenue momentum and demonstrate that promised synergies from its merger are being converted into measurable financial benefits.
Market performance has been mixed. The shares have returned approximately 10.81% over the last six months, based on InvestingPro figures, but sentiment among analysts has not been uniformly upward; eleven analysts have trimmed their earnings estimates for the bank. Morgan Stanley nonetheless views the company as having room to reach its targets, citing a path that includes roughly 10% growth in core fees and about $150 million in synergies. The firm does not, however, expect Huntington to outperform those assumptions.
Investor attention will likely turn to the banks upcoming conference on March 10-11, where Huntington is expected to provide more granular detail on how it plans to extract revenue synergies and other approaches to meeting its financial objectives. That event will be a focal point for analysts and investors seeking clarity on execution and timing.
The strategic context for these expectations is the completed merger with Cadence Bank, which materially increases Huntingtons scale and geographic reach. The combination raises the banks total assets to about $279 billion, with $221 billion in deposits and $187 billion in loans, and brings 390 branches into the network. The merger also materially expands Huntingtons presence across Texas and the Southeast.
Analyst coverage around the deal has skewed mostly positive. Besides Morgan Stanleys reiterated Overweight rating and $21.00 price target, Evercore ISI has started coverage with an Outperform rating, and Truist Securities has increased its price target to $21.00 while keeping a Buy rating. Those stances reflect optimism about Huntingtons post-merger growth prospects even as the bank works through near-term expense and integration dynamics.
At the same time, Huntingtons shares have weakened since the companys most recent earnings release, underscoring the complexity of integrating large acquisitions while managing investor expectations. The next several months will be critical for the bank to show that its expanded footprint and reinvestment strategy translate into sustained revenue acceleration and realized cost synergies.
What to watch next
- Details and modeling updates following the March 10-11 investor conference, particularly on revenue synergies and alternative approaches management may present.
- Quarterly results and forward commentary that indicate whether revenue momentum is tracking toward the revised mid-year catalysts.
- Any updates to synergy realization timelines and the magnitude of reinvestment versus cost savings.