Huntington Bancshares Incorporated "CEO NDR takeaways: $1.90-$1.93 in '27..."

Research evidence excerpt

Huntington Bancshares Incorporated "CEO NDR takeaways: $1.90-$1.93 in '27..."

repricing, commercial cross-sell opportunities, wealth

management growth, and capital markets expansion as meaningful sources of future

upside. Just as importantly, management made clear that another bank acquisition is

not currently part of the near-term playbook -- particularly as its presence in newer

markets is attracting banker talent from other peer banks. The message throughout the

week was that Texas (with build-out coming in Austin), the Carolinas, Nashville, Atlanta,

and other newer markets provide more than enough opportunity to support growth

without adding additional integration risk.

Growth remains the differentiator and we still see HBAN outgrow peers

While investors spent much of the week focused on funding costs and integration,

management continued to spend most of its time talking about growth. The company

remains committed to its organic loan growth guidance. Commercial pipelines were

described as strong, and management highlighted continued momentum across newer

commercial verticals (highlighted that CADE energy vertical is very attractive),

particularly in Texas and the Southeast. The company remains optimistic about

equipment finance activity in the second half of the year and suggested that some

recent conservatism around growth reflects geopolitical uncertainty rather than any

meaningful deterioration in customer demand. The expansion strategy also appears to

be working. Management highlighted that turnover among key relationship managers

hired to drive expansion has been exceptionally low, with only 7 departures among

roughly one thousand RM hires.

Branch performance has also exceeded expectations, particularly in the Carolinas (de