US$1.2 Billion Buyback and Leadership Changes Could Be a Game Changer for First Horizon (FHN)

• First Horizon Corporation recently announced a new share repurchase program, authorizing up to US$1.2 billion in common stock buybacks and confirming ongoing capital returns to shareholders, while also appointing new corporate leaders and board members, and declaring dividends on common and preferred stock.
• This suite of actions, including the substantial buyback, leadership changes, and board expansion, highlights the company’s intent to reinforce management strength, enhance shareholder returns, and solidify its organizational structure.
• We'll examine how the newly authorized US$1.2 billion share repurchase program reshapes First Horizon's investment narrative and capital priorities.

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First Horizon Investment Narrative Recap

To own shares in First Horizon, an investor generally needs to believe in the company’s ability to balance capital returns with earnings stability amid an uncertain economic outlook. The new share repurchase program reinforces First Horizon's capital priorities, but it does not materially shift the most immediate catalysts, such as operational efficiency and the ability to defend net interest margins, or address the ongoing challenge of potential credit quality deterioration in a volatile market.

Among the latest announcements, the expansion of First Horizon’s board from thirteen to fourteen members is particularly relevant. This increase brings fresh governance perspectives, possibly supporting management as they navigate evolving regulatory and risk environments, but does not alter the importance of cost and risk control in the near term.

Yet, while investors may be encouraged by buybacks and board changes, heightened provision expenses remind us that...

Read the full narrative on First Horizon (it's free!)

First Horizon's narrative projects $3.7 billion in revenue and $965.0 million in earnings by 2028. This requires 6.7% yearly revenue growth and a $149.0 million earnings increase from $816.0 million today.

Uncover how First Horizon's forecasts yield a $24.49 fair value, a 14% upside to its current price.

Exploring Other Perspectives

Fair value estimates from the Simply Wall St Community range from US$24.49 to US$29.03, based on three individual analyses. Despite varied predictions, credit quality risks linked to provision expense trends remain an important consideration for the company’s outlook, explore a variety of opinions before forming your own view.

Explore 3 other fair value estimates on First Horizon - why the stock might be worth just $24.49!

Build Your Own First Horizon Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your First Horizon research is our analysis highlighting 3 key rewards and 1 important warning sign that could impact your investment decision.
• Our free First Horizon research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate First Horizon's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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