Bullish indicating open at $55-$60, IPO prices at $37
Investing.com - Citi raised its price target on First Horizon National (NYSE:FHN) to $25.00 from $22.00 on Thursday, while maintaining a Buy rating on the regional bank’s shares. The stock, currently trading at $21.66, has demonstrated strong momentum with a 36% return over the past year. According to InvestingPro analysis, First Horizon appears undervalued, with 7 analysts recently revising their earnings estimates upward.
The firm cited First Horizon’s revenue outlook, which Citi believes will trend toward the higher end of guidance, while expenses are expected to be at the lower end of the projected range. The bank maintains a healthy P/E ratio of 13.7x and has consistently paid dividends for 15 consecutive years.
Citi noted that First Horizon’s net loan growth exceeded expectations in the second quarter, though it was primarily driven by mortgage activity that typically reverses in subsequent periods.
The bank’s credit performance remains strong, and Citi views the minimal share repurchases during the second quarter as a positive indicator for future growth potential.
With First Horizon’s capital ratio now at 11.0% and growth rebounding across the banking sector, Citi expects the company’s capital allocation to support organic growth activities.
In other recent news, First Horizon National Corporation reported its second-quarter 2025 earnings, exceeding analysts’ expectations with an earnings per share (EPS) of $0.45, surpassing the forecasted $0.42. Despite this positive earnings surprise, the company’s revenue slightly missed projections, totaling $830 million compared to the expected $831.93 million. The earnings announcement followed a 2% quarter-over-quarter increase in net interest income, amounting to an additional $10 million. Additionally, First Horizon’s period-end loan and deposit balances both increased by 2% from the previous quarter. The company’s net interest margin experienced a slight compression to 3.4%, yet it maintained its overall financial health. Notably, First Horizon’s management expressed optimism for future growth, targeting a $100 million improvement in pre-provision net revenue (PPNR) over the coming years. The company aims to achieve a return on tangible common equity (ROTCE) of over 15% within the next two to three years. Analyst firms like Raymond (NSE:RYMD) James and KBW participated in the earnings call, indicating continued interest in First Horizon’s financial performance and strategic direction.
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