Analyst Manan Gosalia of Morgan Stanley maintained a Buy rating on Huntington Bancshares, retaining the price target of $19.00.
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Manan Gosalia has given his Buy rating due to a combination of factors related to Huntington Bancshares’ strategic acquisition and growth plans. The acquisition of Veritex Holdings significantly enhances Huntington’s scale in Texas, a key growth market for the bank. This move accelerates the bank’s expansion in the region, allowing it to leverage its existing brand and product offerings more effectively.
Additionally, the acquisition is expected to bring about financial benefits, including a modest increase in earnings per share in the near term and a more substantial impact by 2027. The integration of Veritex’s local expertise and branch network with Huntington’s capabilities is anticipated to reduce costs and boost income growth. Despite some concerns about Veritex’s higher criticized assets, recent improvements suggest manageable credit risk, supporting the positive outlook for Huntington’s strategic direction.
According to TipRanks, Gosalia is a 4-star analyst with an average return of 9.2% and a 59.67% success rate. Gosalia covers the Financial sector, focusing on stocks such as Cadence Bank, Comerica, and Commerce Bancshares.
In another report released on July 13, Bank of America Securities also maintained a Buy rating on the stock with a $19.00 price target.