First Horizon's analyst price target has increased slightly to $25.07 from $24.77, as analysts cite improving profitability prospects, resilient revenue growth, and cost efficiencies reflected in recent earnings and industry outlook updates.
Analyst Commentary
Recent analyst research on First Horizon reflects a balanced view, with several optimistic highlights countered by some valuation-related caution. Perspectives are shaped by the company’s operating performance and evolving industry conditions.
Bullish Takeaways- Price targets have been raised, reflecting improved fundamentals and a stronger near-term earnings outlook.
- Recent quarters have shown better-than-expected profitability driven by cost efficiencies and lower provisions.
- Loan growth commentary has become more positive, signaling underlying demand and management's focus on organic expansion.
- Updates to earnings forecasts point to higher future growth, supported by increased loan balances and expense management.
- Some analysts remain cautious about valuation, with the stock trading at a premium compared to regional banking peers.
- Neutral ratings indicate concerns about upside potential at current price levels.
- Execution risk remains, especially as the company transitions focus to deepening client relationships after recent major corporate events.
- Broader industry factors, such as market consolidation and ongoing regulatory shifts, may limit immediate multiples expansion.
What's in the News
- First Horizon announced plans to consolidate two Charlotte offices into a new, modern location in the city's South End. The company will occupy the top three floors of a 24-story building featuring enhanced amenities and workspace for 250 employees. (Key Developments)
- Between April and June 2025, the company repurchased 512,000 shares for $9.24 million. This completed a total buyback of 24,436,000 shares, or 4.65 percent, for $498.11 million under its current program. (Key Developments)
- Net charge-offs for the second quarter of 2025 rose by $5 million to $34 million. (Key Developments)
- First Horizon reaffirmed its 2025 full-year earnings guidance by maintaining its targets for revenue growth and reporting performance at the upper end of expectations to date. (Key Developments)
Valuation Changes
- Fair Value Estimate has risen slightly to $25.07 from $24.77. This reflects a modest improvement in projected fundamentals.
- Discount Rate has fallen modestly to 6.88% from 6.94%, which signals a marginally lower perceived risk profile.
- Revenue Growth Forecast has increased very slightly to 6.61% from 6.59%. This suggests expectations of modest ongoing expansion.
- Net Profit Margin estimate has improved to 26.70% from 26.16%, indicating higher anticipated profitability.
- Future P/E Ratio has decreased fractionally to 13.68x from 13.83x, which implies slightly more attractive valuation multiples based on forward earnings.
Disclaimer
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