Huntington Bancshares (HBAN) has several ways to reach about $2 in earnings per share by 2027, including stronger revenue from recent acquisitions, lower expense growth, and increased share buybacks, Morgan Stanley said in a note Wednesday.

The firm said Huntington's shares have lagged peers since its Jan. 22 earnings, falling about 2% since then as investors grew more uncertain about the company's ability to reach its $2 EPS target in 2027. That concern stems largely from higher-than-expected 2026 expense forecast, which has added near-term noise to the outlook.

The firm added that it believes the market reaction is overdone. "Market is missing that the benefits of the acquisitions, along with stronger core growth, come through in 2027," it added.

Huntington is expected to see EPS rise from $1.67 in 2026 to $1.90 in 2027, supported by higher loan growth, net interest margin expansion, stronger middle-market mergers and acquisitions activity, and growth in Payments and Wealth Management, the firm said.

Additional revenue from recent acquisitions and cost savings from the Veritex and Cadence Bank deals should further boost efficiency, helping the bank generate significant operating leverage through 2027, it added.

Morgan Stanley has an overweight rating and a $21 price target on the stock. The firm also selected Huntington Bancshares as its Top Pick.

Price: 18.92, Change: +0.52, Percent Change: +2.85