Baird removes Fresh Pick on Huntington and comments on banks
Baird removed its “Fresh Pick” designation on Huntington Bancshares (HBAN) but kept an Outperform rating, saying bank stocks trade at or slightly above fair value. It cut HBAN’s 2027 EPS estimate to $1.80 versus management guidance of $1.90, citing difficulty meeting targets without low provisions and strong fee trends. Baird also expects possible guidance cuts tied to Cadence’s impact on NII and margins.
How this was made
The 30-second read
Why it matters
For HBAN, the key incremental datapoints are the Fresh Pick removal and the 2027 EPS estimate cut, tied to provision difficulty and margin pressure from Cadence and loan-deposit mix.
Market read
This is an analyst positioning update for HBAN with a concrete EPS estimate change and a forward-looking rationale tied to September conference season.
What to watch
The article does not quantify how much Cadence’s lower NII contribution will persist, nor does it discuss potential offsetting actions (pricing, deposit strategy, expense discipline).
Background
Baird’s note frames bank stocks as trading at or slightly above fair value and suggests the industry is nearing a peak in return on equity.
Ticker impact
Baird removed its Fresh Pick designation on Huntington Bancshares and cut its 2027 EPS estimate to $1.80 from $1.90 guidance.
Near-term downside bias versus prior analyst positioning, but limited magnitude since rating remains Outperform.
The article provides a specific estimate cut and rationale (provision, fees, Cadence NII contribution, loan-deposit mix) while keeping the rating unchanged, implying incremental but not decisive repricing.
Market effects
Reinforces a view that bank return tailwinds are increasingly priced, with ROE peak risk as NII inflects and capital returns continue.
None specified.
None specified.
Counterpoint
Even with lower EPS estimates, Huntington could still outperform if credit stays benign and fee strength offsets margin pressure more than Baird assumes.
Key entities
- companyHuntington Bancshares
Subject of Baird’s Fresh Pick removal and 2027 EPS estimate cut, with margin and NII-related risks cited.
- analyst_firmBaird
Removed Fresh Pick on HBAN while maintaining Outperform, and lowered 2027 EPS estimate to $1.80.
- companyCapital One Financial
Named as a Baird favorite for the broader group.
- companyPinnacle Financial Partners
Named as a Baird favorite for the broader group.
