UPDATE: JP Morgan Initiates Huntington Bancshares with Neutral, $7 PT; Discount Valuation Justified

JP Morgan initiates its coverage on Huntington Bancshares

with a Neutral rating and a price target of $7. JP Morgan notes, "While this is the best version of Huntington that we have seen in over a decade, it's still a laggard on many key metrics. Huntington has emerged from the financial crisis as a classic turnaround story. Despite meaningful progress, however, on the surface compared to peers, HBAN has (1) less capital, (2) still worse credit quality, (3) a lower NIM, (4) greater volatility of PTPP income and (5) greater regulatory scrutiny and costs given that the bank is over $50 billion in assets." HBAN closed at $6.28 on Tuesday.