First Horizon stock price target lowered to $24 by TD Cowen on acquisition plans

Published 16/10/2025, 13:20
First Horizon stock price target lowered to $24 by TD Cowen on acquisition plans

Investing.com - TD Cowen has reduced its price target on First Horizon National (NYSE:FHN) to $24.00 from $25.00 while maintaining its Hold rating on the regional bank’s stock. The bank, currently trading at $20.85 with a market cap of $10.4 billion, maintains a "GOOD" overall financial health score according to InvestingPro analysis.

First Horizon shares fell 9% following its third-quarter 2025 earnings report, despite the bank delivering earnings per share that exceeded analyst expectations, driven by stronger revenue and a negative loan loss provision. The bank’s fundamentals remain solid, with a P/E ratio of 14x and a consistent dividend yield of 2.88%. InvestingPro data reveals six analysts have recently revised their earnings estimates upward for the upcoming period.

The significant stock decline came after management discussed potential "tuck-in acquisitions" within the bank’s existing geographic footprint, according to TD Cowen analyst Janet Lee.

This acquisition strategy surprised investors who had primarily viewed First Horizon as a potential acquisition target rather than a buyer in the regional banking consolidation landscape.

TD Cowen indicated it had screened potential acquisition candidates for First Horizon, focusing on banks with assets between $15 billion and $40 billion that have overlapping geographic footprints with First Horizon’s existing operations.

In other recent news, First Horizon National Corporation reported its third-quarter 2025 earnings, exceeding Wall Street expectations. The company posted an adjusted earnings per share (EPS) of $0.51, surpassing the forecasted $0.44, and reported revenue of $889 million, outperforming the anticipated $847.27 million. Despite these strong financial results, analyst actions have reflected concerns regarding the company’s strategic direction. Evercore ISI downgraded First Horizon from Outperform to In Line, citing management comments suggesting openness to potential whole bank acquisitions. Similarly, Raymond James lowered its price target to $23.00, maintaining an Outperform rating, while Jefferies reduced its target to $25.00 but kept a Buy rating. Wells Fargo maintained its Equal Weight rating, observing a shift in management’s messaging towards potential mergers. These developments indicate a possible strategic pivot for First Horizon, as analysts interpret management’s comments as positioning the company as a near-term buyer rather than a seller.

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