Truist Securities ups Hancock Whitney shares target, highlights Q2 results By Investing.com

On Wednesday, Truist Securities updated its view on Hancock Whitney (NASDAQ:) shares, increasing the price target to $57.00, up from the previous $49.00, while keeping a Hold rating on the stock.

The firm’s assessment followed Hancock Whitney’s second-quarter performance, which showcased solid results, including pre-provision net revenue (PPNR) that surpassed both Truist’s and the consensus estimates by 4% and 3.2%, respectively.

The company demonstrated robust net interest income (NII) growth from the last quarter and maintained well-controlled credit trends. Additionally, Hancock Whitney provided guidance that indicated a slightly better PPNR outlook.

A key discussion point among investors is the company’s capital return strategy, especially given the Common Equity Tier 1 (CET1) ratio, which currently stands at 13.2%.

Projections suggest this could increase to over 14% by the end of 2025 if the current conservative pace of share repurchases continues, as seen with the $14 million in repurchases during the second quarter.

Truist Securities believes that an accelerated approach to capital return could act as a positive catalyst, particularly if loan growth does not pick up pace. Nonetheless, the firm has decided to maintain its Hold rating on Hancock Whitney shares.

This decision is based on the expectation that their PPNR forecast aligns closely with the consensus and that the stock’s valuation is already full relative to its current financial metrics and market position.

In other recent news, Hancock Whitney has been the focus of several analyst reports following its second-quarter performance. DA Davidson raised the price target for Hancock Whitney to $63.00 from $57.00, citing solid second-quarter results, while maintaining a Buy rating. Citi also maintained its Buy rating, raising the share price target to $61 on a positive outlook for net interest margin expansion and profitability.

On the other hand, Truist Securities reduced its share price target to $46, maintaining a Hold rating. Stephens held steady with an Equal Weight rating and a $50 share price target for Hancock Whitney, following the company’s first-quarter earnings report that surpassed consensus forecasts.

These recent developments highlight Hancock Whitney’s consistent funding costs, an increase in net interest income, and low credit costs. The bank’s 2024 guidance presented a steady year-over-year loan balance, with an anticipated increase in fee income and a slower rise in expenses supporting the pre-provision net revenue forecast.

Citi initiated a 90-day upside catalyst call on Hancock Whitney, signaling potential stock performance in the near term. These assessments underscore the attention Hancock Whitney has been receiving from various analyst firms, with the company’s financial performance and strategic approach aligning with a stable financial outlook.

InvestingPro Insights

InvestingPro data highlights Hancock Whitney’s (NASDAQ:HWC) robust financial performance and market position. With a market capitalization of $4.65 billion and a P/E ratio that has remained stable at around 12.58, the company presents a stable investment profile. Notably, Hancock Whitney has delivered strong returns to investors, with a significant 12.77% price total return over the last week and an impressive 30.68% over the past year, reflecting investor confidence.

InvestingPro Tips indicate that while the stock is currently trading near its 52-week high, which suggests it’s in overbought territory, the company has also maintained dividend payments for an impressive 37 consecutive years. This consistency is a testament to its financial resilience and commitment to shareholder value, a point of interest for income-focused investors. Additionally, analysts predict Hancock Whitney will be profitable this year, an assertion supported by its profitability over the last twelve months.

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