Nvidia and TSMC to unveil first domestic wafer for Blackwell chips, Axios reports
Investing.com - First Horizon National (NYSE:FHN) stock was downgraded by Evercore ISI from Outperform to In Line with a price target cut to $20.00 from $26.00 on Thursday. According to InvestingPro data, the stock is currently trading near its Fair Value, with analyst targets ranging from $22.75 to $27.00.
The downgrade follows a significant 11% selloff in First Horizon shares on Wednesday after management comments during the earnings call suggested openness to potential whole bank acquisitions. This stance contradicted investor sentiment and recent media reports that had positioned the bank as a potential acquisition target. InvestingPro data shows the bank maintains strong fundamentals with a PEG ratio of 0.46, suggesting attractive valuation relative to growth.
Evercore ISI noted that the bank’s comments make a potential sale of First Horizon unlikely over the next 12+ months, leading the firm to view the company’s post-selloff valuation as fair based solely on its updated financial outlook.
The research firm’s updated earnings model projects approximately 8% EPS growth and 5% PPNR expansion for First Horizon in 2026, compared to approximately 9.5% and 7.5% respectively for midcap bank peers. Peer midcap banks currently trade at approximately 10x 2026 estimated earnings.
Prior to reporting third-quarter 2025 earnings, First Horizon had traded at a 2-turn premium to peers at approximately 12x 2026 earnings, but Evercore ISI now sees limited upside potential from the current valuation. The bank currently trades at 14x earnings and offers a 2.88% dividend yield, having maintained dividend payments for 15 consecutive years. Get more insights and access to detailed financial analysis with InvestingPro, which features 8 additional exclusive tips for First Horizon.
In other recent news, First Horizon National Corporation reported its third-quarter 2025 earnings, exceeding Wall Street expectations. The company delivered an adjusted earnings per share (EPS) of $0.51, surpassing the forecasted $0.44, and reported revenue of $889 million, beating the anticipated $847.27 million. Despite these positive results, management comments during the earnings call indicated a potential interest in "in-footprint tuck-in acquisitions," which led Raymond James to lower its price target from $25.00 to $23.00, though it maintained an Outperform rating. Jefferies also adjusted its price target for First Horizon, reducing it to $25.00 from $28.00, while maintaining a Buy rating, citing the bank’s strong third-quarter performance and reaffirmed full-year 2025 guidance.
Wells Fargo maintained its Equal Weight rating with a $23.00 price target, noting a significant shift in management messaging that suggests First Horizon may be positioning as a near-term buyer rather than a seller. The shift in M&A stance has been a focal point for analysts, influencing their recent assessments and price target adjustments. These developments come amidst fluctuating stock performance, with analysts closely monitoring the bank’s strategic direction and its implications for investors.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.