Analyst Ebrahim Poonawala of Bank of America Securities reiterated a Buy rating on First Horizon (FHN – Research Report), with a price target of $24.00.
Ebrahim Poonawala has given his Buy rating due to a combination of factors that highlight First Horizon’s strong financial performance and strategic positioning. The company reported an earnings per share (EPS) beat for the first quarter of 2025, driven by reduced expenses and a notable expansion in net interest margin (NIM). Management’s confidence in achieving positive pre-provision net revenue growth for the fiscal year 2025, along with their ability to manage expenses if revenue growth slows, supports a positive outlook.
Additionally, Poonawala notes that First Horizon has effectively navigated challenges following the termination of a merger in 2023, positioning itself well for future growth. The bank’s balance sheet remains robust, and its unique business mix, including a counter-cyclical fee business, provides a hedge against economic fluctuations. The potential for a re-rating of the stock, along with the possibility of benefiting from increased merger and acquisition activity due to its strategic Southeastern footprint, further justifies the Buy rating.
In another report released today, Barclays also maintained a Buy rating on the stock with a $23.00 price target.
FHN’s price has also changed slightly for the past six months – from $17.390 to $17.280, which is a -0.63% drop .