Deutsche Bank Upgrades Huntington Bancshares (HBAN) to Buy
- Amazon, health stocks weigh on S&P, Nasdaq; Chevron lifts Dow
- ExxonMobil (XOM) Tops Q3 EPS by 5c; CapEx Light of Views
- Baker Hughes (BHI), General Electric (GE) in Partnership Talks, Not Merger Talks
- AbbVie (ABBV) Tops Q3 EPS by 1c; Boosts FY16 EPS Outlook
- Amazon.com (AMZN) Misses Q3 EPS by 26c, Offers Q4 Guidance
Get inside Wall Street with StreetInsider Premium. Claim your 2-week free trial here.
Deutsche Bank upgraded Huntington Bancshares (NASDAQ: HBAN) from Hold to Buy with a price target of $11.50 (from $10.50). Analyst Matt O-Connor thinks concerns surrounding consumer indirect auto lending are overblown.
"HBAN shares have devalued by 15% since the FMER deal was announced— trading at a 10% discount to peers on 2017E vs. a 5% premium before the deal. The devaluation reflects a combination of concerns around execution risk, the ability to implement cost saves, and the significant earnback period for TBV dilution (which mgmt estimated to be 5.5 years and we believe could be longer). There’s also industry-wide concerns surrounding consumer indirect auto lending, a large business for HBAN. However, we think these concerns are overblown and that the large devaluation is overdone. Our 2017e is below consensus (at $0.85 vs. $0.89) as we assume stable interest rates and have more conservative deal accretion estimates. However, the 5% EPS downside vs. consensus is similar to what we see for peers. While we weren’t thrilled with the deal at announcement, it’s better than some other recent large deals and HBAN had a strong currency/earnings into the deal," said the analyst.
Shares of Huntington Bancshares closed at $9.74 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Wedbush Remains Bullish on Amazon.com (AMZN) Following 3Q
- Stifel Upgrades Hub Group (HUBG) to Buy
- Leerink Partners Downgrades McKesson (MCK) to Market Perform
Create E-mail Alert Related CategoriesAnalyst Comments, Analyst EPS View, Upgrades
Related EntitiesDeutsche Bank, Earnings
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!