HBAN falls after Huntington trims guidance at Barclays conference

Keefe Bruyette & Woods cut Huntington Bancshares' (HBAN) price target to $18.00 from $19.50, citing updated guidance for net interest income and loan growth. The firm reduced its 2026 and 2027 earnings estimates by 3% and 5%, respectively. HBAN trades at $15.41 with a P/E ratio of 11.97, and InvestingPro suggests it is undervalued.

Huntington Bancshares (HBAN) dropped 5.55% after lowering its 2027 EPS guidance to $1.75-$1.83 and 2026 net interest income growth to ~35%, citing rising deposit costs and loan pricing tightening. The Fed's rate hike exacerbated concerns about regional-bank margins, with peers like Fifth Third also seeing declines. Despite the selloff, Huntington's loan and deposit growth, along with fee income, provide some cushion. Analysts maintain an Overweight rating, with a price target of $21.

Major U.S. banks, including JPMorgan, Bank of America, and others, raised their prime lending rate to 7% after the Federal Reserve's quarter-point rate hike. The move increases borrowing costs for consumers and businesses. Bank stocks fell, with BofA down 2.7%, Citi 2.4%, and JPMorgan 1%. Rate hikes may boost bank earnings but could also slow economic activity and impact credit quality.

U.S. stocks fell Wednesday after the Federal Reserve raised interest rates, with the S&P 500 down 0.4% and the Dow Jones dropping 1.2%. Fed Chairman Kevin Warsh indicated more hikes may come as inflation remains high. Traders expect rates to reach 4.25%-4.50% by year-end. Bank stocks declined, while AI-related stocks like Nvidia and AMD rose.

Top U.S. banks, including JPMorgan and Bank of America, raised their prime lending rate to 7% after the Federal Reserve's first rate hike since 2023. The Fed increased rates by 0.25% and signaled further hikes, aiming to combat inflation. Bank shares fell, with JPMorgan down 1% and Goldman Sachs down 4%. Higher rates boost bank earnings but may slow economic activity and reduce loan demand.

Huntington Bancshares (HBAN) stock fell 2.0% to $16.41 in pre-market trading after lowering its fiscal 2027 EPS guidance to $1.75-$1.83, down from $1.90-$1.93, and revising 2026 net interest income growth forecast lower. The bank cited high short-term rates and deposit pricing competition. The stock's ex-dividend date is September 17.