Overview
Truist Securities reiterated its Buy rating on Huntington Bancshares (NASDAQ: HBAN) and kept a $21.00 price target after updating its earnings model to reflect guidance and acquisition accounting changes. At the time of the update the stock was trading at $17.93, carrying a price-to-earnings ratio of 12.96. Data from InvestingPro is noted by Truist as indicating the bank is modestly undervalued on a Fair Value basis.
Model revisions and EPS outlook
Truist trimmed its earnings-per-share (EPS) estimates for Huntington, reducing the 2026 forecast from $1.70 to $1.60 and cutting the 2027 projection from $2.00 to $1.92. Those downward adjustments were made to align with the company’s updated guidance. InvestingPro also flags that 11 analysts have recently moved their earnings expectations lower for the coming period.
The revision chiefly reflects lower purchase accounting accretion - often abbreviated PAA - resulting from Huntington’s acquisition of Cadence. Truist notes that consensus estimates had not fully baked in the $2.00 pro-forma EPS figure that was initially discussed around the time of the acquisition announcement.
On the consensus trajectory, Truist expects only a modest reduction in collective estimates for 2027 - roughly a 1% decline - if most analysts adopt Huntington’s guided range of $1.90 to $1.93 for that year. By contrast, the 2026 numbers were trimmed more materially in Truist’s model.
Valuation and interpretation of accounting changes
Despite lowering near-term EPS forecasts, Truist preserved its $21.00 target. The firm’s valuation approach uses the revised 2027 EPS estimate and applies an 11x multiple to derive the target. In Truist’s view, the reduced PAA may be constructive: lower acquisition-related accretion can indicate earnings of higher quality and results in less dilution to tangible book value per share from the deal.
M&A integration and scale metrics
Huntington has completed its merger with Cadence Bank, a transaction that significantly grows its footprint in Texas and the Southeast. The combined organization reported approximately $279 billion in assets, $221 billion in deposits, and $187 billion in loans as of December 31, 2025. The deal added 390 branches to Huntington’s network, bringing the total to nearly 1,400 branches across 21 states.
Other analyst coverage
Other analysts have expressed confidence in Huntington following the merger and guidance adjustment. Morgan Stanley reiterated an Overweight rating and maintained a $21.00 price target while the bank revised its 2027 EPS guidance down to a range of $1.90 to $1.93 from an earlier $2.00 figure. Morgan Stanley attributed the revision to lower provision for acquired assets but noted Huntington intends to reinvest certain synergies to pursue higher revenue targets.
Separately, Evercore ISI initiated coverage with an Outperform rating and a $21.00 price target, citing the bank’s larger scale in faster-growing markets after the Cadence transaction.
Takeaway
Truist’s updated modeling reduces near-term EPS expectations for Huntington due to lower acquisition-related accretion, but the firm retains its Buy stance and $21 target by applying an 11x multiple to the revised 2027 forecast. The Cadence integration materially increases Huntington’s balance-sheet and branch footprint, and several other sell-side firms continue to express positive views at the current valuation.