11:11 AM EDT, 10/18/2024 (MT Newswires) -- Huntington Bancshares' ( HBAN ) growth initiatives, which delivered solid Q3 results, are gaining momentum and should continue yielding favorable outcomes next year, RBC Capital Markets said in a note sent Friday.

"The core bank is performing well and momentum continues to build from new initiatives, which should provide tailwinds in 2025," the firm said, referring to recent measures to accelerate loan and deposit growth and drive stronger fee income.

While the company's Q4 outlook suggests "some moderation" from Q3 trends, RBC said "the favorable medium-term expectations and franchise momentum are unchanged."

RBC, however, said the timing of rate cuts could drive "net interest income headwinds" and result in a "modest" margin in the near term. The firm trimmed its earnings per share forecasts for 2024 to $1.21 from $1.23, and for 2025 to $1.35 from $1.40, while introducing a 2026 EPS estimate of $1.55.

RBC has an outperform rating on the stock and a $17 price target.

Price: 15.30, Change: -0.13, Percent Change: -0.84