On Wednesday, Stephens analyst Matt Olney increased the price target for Hancock Whitney (NASDAQ:HWC) shares to $74.00, up from the previous $68.00, while maintaining an Overweight rating. Olney's assessment followed Hancock Whitney's fourth-quarter 2024 earnings and pre-provision net revenue (PPNR), which surpassed expectations due to strong fee income, reduced loan loss provisions, and effective cost management. The company's preliminary guidance for 2025 suggests operating leverage that slightly exceeds the consensus forecast.
Hancock Whitney's management has revealed its organic growth strategy, which includes the recent hiring of seven producers and plans to recruit an additional 28 in 2025. The bank is also expanding its trust and asset management services, highlighted by the upcoming acquisition of Sabal, which is expected to close in the second quarter of 2025. Despite an increase in criticized loans by $115 million, or 20%, in the fourth quarter of 2024, the bank maintains a high reserve ratio of 1.47% to cover potential losses.
The analyst believes that the market undervalues Hancock Whitney's profitability and that the bank's substantial capital reserves will offer further growth opportunities. The new price target of $74 is based on 13 times Stephens' forecasted 2026 earnings per share (EPS) of $5.68 and 1.75 times the 12-month trailing book value per share (TBVPS). Olney's Overweight rating reflects confidence in Hancock Whitney's financial performance and growth prospects.
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