Recent Research Analysts’ Ratings Updates for First Horizon National (FHN)
First Horizon National (NYSE: FHN) received a number of price target changes and ratings updates during the last week:
- First Horizon National was downgraded by analysts at Compass Point from a “neutral” rating to a “sell” rating. They now have a $9.00 price target on the stock, up previously from $8.00. They noted that the move was a valuation call. They noted that the move was a valuation call.
- First Horizon National had its “market perform” rating reaffirmed by analysts at Wells Fargo & Co..
- First Horizon National was downgraded by analysts at FIG Partners to a “market perform” rating. They wrote, “We are lowering our recommendation on FHN to ‘Market-Perform’ based on recent price rally and our outlook that 2013 EPS remain cloudy at FHN relative to other regional banks due to uncertain fee income trends. No change in our EPS estimates: 3Q12 projection is $0.17, two pennies less than Street consensus due to less conviction on recovering Capital Markets revenue. Our 2013 EPS outlook also unchanged at $0.85 (one penny shy of consensus estimates). Yes, its is true that Mortgage Rescission provisions were ‘front-loaded’ in the last quarter and that 3Q12 charges should be significantly lower and support true profitability in the current quarter. But, the equity market has now recognized this along with the fact that FHN’s share count should decline from buyback activity. FHN shares are priced at nearly 11.5x 2013 EPS. We think a 12x P/E cannot be ruled out and it is possible that FHN is able to reduce overhead costs such that revenue weakness on Capital Markets (see below) is offset. This is a highly uncertain scenario and market expectations will largely be driven by what is reported in Mid-October 2012 for 3Q-2012 earnings results.”
- First Horizon National had its “neutral” rating reaffirmed by analysts at Zacks. They now have a $10.00 price target on the stock. Zacks‘ analyst wrote, “Increase in reserves for government sponsored enterprises (GSEs) mortgage repurchases have resulted in First Horizon reporting a loss in the second-quarter of 2012, following five consecutive quarters of profit. The loss was in line with the Zacks Consensus Estimate. Lower-than-expected revenue fell both sequentially and year over year. While winding down of the non-strategic part of the loan portfolio bodes well, it will remain a drag on its earnings going forward. Shrinking revenue base and regulatory issues, tepid economic recovery along with a low interest rate environment serve as headwinds for the company’s results. Yet, First Horizon’s endeavor to lower its exposure to problem loans is impressive. It is also aiming at controlling costs and improving long-term profitability by focusing on growing its core Tennessee banking franchise, which would augur well going forward. Moreover, share buybacks give a boost to investors’ confidence in the stock.”
- First Horizon National had its “neutral” rating reaffirmed by analysts at Macquarie. They now have a $9.00 price target on the stock.
First Horizon National Co. opened at 9.73 on Thursday. First Horizon National Co. has a 1-year low of $6.00 and a 1-year high of $10.99. The company’s market cap is $2.421 billion.
First Horizon National Corporation (FHN) is a bank holding company. The Company provides financial services through its subsidiary, First Tennessee Bank National Association (the Bank), and its subsidiaries.