2024-06-04 13:06:01 ET
Summary
- Shares of Hancock Whitney Corporation have modestly outperformed peers since my last update, as funding cost headwinds continue to ease and attention turns to the bank's strong capital position.
- Buybacks look poised to resume soon, with the bank needing to ramp up capital returns if it is to avoid accumulating more surplus capital.
- These shares continue to look modestly valued at around 1.35x tangible book value, with this implying a P/E of less than 10x consensus 2024 EPS.
Shares of Hancock Whitney Corporation ( HWC ) have done okay since my last update in early March , outperforming regional bank peers with a circa 7% total return in that time. Back then, I rated HWC a "Buy," with that driven by a then-valuation of just 1.25x tangible book value per share ("TBVPS"). With the bank still clearing a mid-teens return on tangible common equity ("ROTCE"), and targeting a slightly better high-teens ROTCE by 2026, the stock theoretically offered investors an attractive 12-14% internal rate of return....
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Hancock Whitney: Surplus Capital Points To The Resumption Of Stock Buybacks