Stock market today: S&P 500 falls as government shutdown, trade jitters persist
Investing.com - First Horizon National (NYSE:FHN) stock fell sharply after Raymond James lowered its price target to $23.00 from $25.00 while maintaining an Outperform rating. According to InvestingPro data, the bank currently trades at a P/E ratio of 13.4 with a notably low PEG ratio of 0.51, suggesting potential undervaluation relative to growth prospects.
The price target reduction followed management comments during Wednesday’s earnings call that suggested potential interest in "in-footprint tuck-in acquisitions," contradicting investor expectations that First Horizon was more likely to be acquired in the near term.
Raymond James noted that despite "relatively solid results," the market interpreted management’s commentary about a "more conducive M&A backdrop" as a shift in strategy, particularly following Comerica’s recently announced sale to Fifth Third Bancorp which had positioned First Horizon as a top takeover candidate.
The investment firm suggested First Horizon shares "could prove to be somewhat range bound in the nearer term" following the selloff, despite modest increases in the firm’s earnings estimates for future years based on lower projected expenses, improved credit costs, and higher share repurchases. Seven analysts have recently revised their earnings estimates upward, according to InvestingPro, which shows multiple additional bullish indicators available to subscribers.
Raymond James maintained its Outperform rating, citing a "positive risk-reward skew" supported by benefits from lower interest rates to First Horizon’s counter-cyclical businesses, expectations for flat expenses with mid-single-digit loan growth in 2026, and "still-elevated scarcity value" of the bank. This outlook aligns with the stock’s impressive 33% gain over the past six months and its current undervalued status based on InvestingPro’s Fair Value analysis.
In other recent news, First Horizon National Corporation reported its third-quarter 2025 earnings, exceeding Wall Street expectations. The company achieved an adjusted earnings per share (EPS) of $0.51, surpassing the anticipated $0.44, marking a 15.91% surprise. Additionally, First Horizon’s revenue reached $889 million, outperforming the projected $847.27 million. Despite these positive financial results, the stock experienced a volatile pre-market session. The earnings report highlights the company’s strong performance in the recent quarter. Analysts had forecasted lower figures, making the actual results notable. These developments are part of the company’s recent financial disclosures.
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