Oklo stock tumbles as Financial Times scrutinizes valuation
Investing.com - Jefferies lowered its price target on First Horizon National (NYSE:FHN) to $25.00 from $28.00 on Wednesday, while maintaining a Buy rating on the regional bank’s shares. The bank, currently valued at $10.64 billion, trades at a P/E ratio of 13.4x, which according to InvestingPro analysis appears undervalued relative to its growth potential.
The price target reduction follows First Horizon’s third-quarter results, which Jefferies described as "strong," noting that the bank reaffirmed its full-year 2025 guidance. The bank has demonstrated robust performance with a 33% price return over the past six months and has maintained dividend payments for 15 consecutive years.
Despite the positive financial performance, First Horizon shares declined after management indicated potential interest in pursuing bank acquisitions as a buyer, which contradicted market expectations that the company might itself be an acquisition target.
Jefferies noted this strategic shift created a "near term overhang" on the stock, but suggested the negative market reaction and resulting impact on First Horizon’s "premium currency" could actually make an acquisition by the bank less likely.
The firm also pointed out that First Horizon’s lower valuation following the share price decline could potentially keep the bank "in play as a target" for other financial institutions looking to make acquisitions.
In other recent news, First Horizon National Corporation announced its third-quarter 2025 financial results, exceeding Wall Street expectations. The company reported an adjusted earnings per share (EPS) of $0.51, surpassing the projected $0.44, marking a 15.91% surprise. Additionally, First Horizon’s revenue reached $889 million, outperforming the anticipated $847.27 million. Despite these positive earnings results, the stock experienced volatility in the pre-market session. In related developments, Raymond James adjusted its price target for First Horizon to $23.00 from $25.00, while maintaining an Outperform rating. This revision followed management’s comments about potential "in-footprint tuck-in acquisitions," which contrasted with investor expectations of the company being a near-term acquisition target. These recent developments offer investors insights into First Horizon’s current financial performance and strategic considerations.
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