Monday, January 24, 2011

Huntington Bancshares (NASDAQ:HBAN) Faces Slow Progress

Huntington Bancshares' (NASDAQ:HBAN) revenue was challenged in the last quarter, and will continued to face hurdles going forward, said the company.

Barclays added, "In terms of its 2011 outlook, HBAN stated revenue headwinds combined with reduced banking revenue and continued investments will challenge earnings growth. As such PPNR is expected to remain in-line with 2H10 performance, with net income driven by a reduction in credit costs. Despite being impressed by HBAN's ability to think through its long-term opportunity set, we remain concerned by its slower growing footprint and sizeable CRE exposure ($6.7B, 18% of total loans)."

Barclays reiterates an "Underweight" rating on Huntington Bancshares (HBAN), which closed Friday at $7.02, gaining $0.17, or 2.50 percent. Barclays has a price target of $7 on Huntington.

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