First Horizon resumed with Neutral from Overweight at JPMorgan

JPMorgan analyst Steven Alexopoulos downgraded First Horizon to Neutral from Overweight with a price target of $13, down from $20, following a period of restriction. The company did a good job of holding the franchise together during the lengthy period it was waiting for the transaction with TD to move forward, the analyst tells investors in a research note. However, the analyst left First Horizon’s investor day feeling that the earnings power of the franchise would be challenged over the near-term with expenses likely to run at an elevated pace at least through 2024. It says First Horizon is facing more near-term headwinds versus tailwinds than peers.