First Horizon stock holds Outperform rating on FY24 guidance By


On Tuesday, Keefe, Bruyette & Woods maintained an Outperform rating on shares of First Horizon National (NYSE:) with a steady price target of $18.00. The affirmation of the rating follows the company’s reiteration of its 2024 guidance at a recent competitor conference.

Moreover, First Horizon National has exceeded expectations with its quarter-to-date share buybacks totaling $212 million, surpassing the $126 million estimate by Keefe, Bruyette & Woods. This significant buyback includes a 6.5 million share block from the previous week, related to a transaction with TD.

The firm’s analyst highlighted First Horizon National’s attractive valuation, noting its trading at 1.27 times tangible book value per share and 9.2 times estimated earnings for 2025. The analyst also emphasized the bank’s advantageous position in an economic climate where interest rates are expected to remain elevated for an extended period.

First Horizon National’s proactive measures in share repurchases reflect a strategic approach to capital management, particularly with the recent large block transaction. Such buybacks can often signal a company’s confidence in its financial health and future prospects.

The banking sector, where First Horizon operates, is sensitive to interest rate changes, and the company’s positioning is seen as favorable in the current financial environment. With interest rates projected to stay high, financial institutions like First Horizon National may benefit from wider interest margins, which can enhance profitability.

In summary, Keefe, Bruyette & Woods’ stance on First Horizon National is based on solid financial metrics and strategic maneuvers within the market. The firm’s recommendation for investors to maintain an overweight position in FHN reflects a positive outlook on the bank’s performance amidst prevailing economic conditions.

In other recent news, First Horizon Corporation has been in the spotlight among investors and analysts. The company’s termination of a merger with TD Bank and its potential to capitalize on favorable market trends and strategic initiatives have been central to discussions. Analysts from RBC Capital Markets, LLC and Keefe, Bruyette & Woods, Inc. have maintained an “Outperform” rating for the company, with a steady price target of $18.00.

In addition, Stephens initiated coverage on First Horizon with an Overweight rating, citing the bank’s strong positioning in the current economic environment. The firm also projected a 17% increase to its price target for First Horizon, expressing confidence in the company’s financial fundamentals and growth potential.

Baird adjusted the price target for First Horizon shares to $16.00, maintaining a Neutral stance, while BofA Securities increased the price target to $18.00, keeping a Buy rating on the stock. Both adjustments followed First Horizon’s reported earnings per share (EPS) for the first quarter of 2024.

Furthermore, First Horizon has been recognized for its controlled expense management and stable credit costs, which contribute to its solid financial position. The company’s strong capital position has enabled the continuation of stock buybacks, signaling confidence in its future prospects. These are among the recent developments that have kept First Horizon in the headlines.

InvestingPro Insights

First Horizon National’s strategic financial management is corroborated by recent positive indicators from InvestingPro. Analysts have shown confidence in the company’s upcoming performance, with 9 analysts revising their earnings upwards for the upcoming period. This aligns with the company’s track record of maintaining dividend payments for 14 consecutive years, a testament to its financial stability and reliability for income-focused investors. Moreover, the company is not only expected to be profitable this year but has also been profitable over the last twelve months, demonstrating a robust financial foundation.

InvestingPro data supports the bank’s attractive valuation, with a P/E ratio of 10.13 and a Price / Book ratio as of Q1 2024 at 0.97, indicating the stock may be undervalued. Moreover, despite a challenging environment, the bank has managed to maintain a solid operating income margin of 36.3% over the last twelve months.

For investors seeking more in-depth analysis, there are additional InvestingPro Tips available that could provide further insights into First Horizon National’s performance. Discover more about these insights and take advantage of a special offer by using coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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