UPDATE: Wolfe Research Downgrades Huntington Bancshares (HBAN) to Peerperform

Wolfe Research analyst Bill Carcache downgraded Huntington Bancshares (NASDAQ: HBAN) from Outperform to Peerperform with a price target of $18.00 (from $20.00).

The analyst comments "HBAN currently trades at 2.0x TBV relative to its historical 1Y / 3Y / 5Y / 10Y average of 1.7x / 1.7x / 1.8x / 1.6x and 12.4x NTM EPS relative to its historical 1Y / 3Y / 5Y / 10Y average of 10.3x / 11.7x / 11.9x / 11.5x. Our justified target P/E multiple, which goes to 12.5x (down from 13.0x previously), implies 0.58x the market multiple (in line with HBAN’s 3-yr average) and is based on HBAN’s risk-return profile (i.e., a 16.7% ROTCE in 2023 and a 9.0% cost of equity). We apply our 12.5x target P/E to our 2023E EPS to arrive at our year-end 2022 price target of $18, which is down from $20 previously, implies ~9% upside in the next ~14 months, and supports our Peer Perform rating."

For an analyst ratings summary and ratings history on Huntington Bancshares click here. For more ratings news on Huntington Bancshares click here.

Shares of Huntington Bancshares closed at $16.49 yesterday.

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