.July 26, 2024 05:39:00 AM

Baird analysts downgraded Huntington Bancshares (NASDAQ:HBAN) to Neutral from Outperform, with a price target of $15. The recent surge in the regional banking sector led to this decision, despite Huntington Bancshares being a high-quality bank.

Market participants may rotate into banks, impacting regional banks due to their smaller market capitalizations. While banks are cheaper compared to mega-cap growth stocks, most regional banks, including Huntington, are now fairly or fully priced. The analysts cannot recommend a bullish stance solely based on the relative cheapness of banks compared to the broader equity market at historically high levels.