Wells Fargo reiterates Equal Weight on First Horizon stock, notes shift to buyer

Published 16/10/2025, 10:58
Wells Fargo reiterates Equal Weight on First Horizon stock, notes shift to buyer

Investing.com - Wells Fargo maintained its Equal Weight rating and $23.00 price target on First Horizon National (NYSE:FHN) stock Thursday. According to InvestingPro data, the stock currently trades at an attractive P/E ratio of 14x, with analysts’ targets ranging from $22.75 to $27.00.

The firm noted a significant shift in management messaging, interpreting recent comments about confidence "in their ability to integrate a well-structured merger" as suggesting First Horizon may be positioning as a near-term buyer rather than seller.

Wells Fargo indicated this represents a departure from previous messaging and removed $3 of takeout premium from its valuation model based on the reduced probability of an immediate sale.

The firm stated that while First Horizon’s fundamentals appear strong and an eventual sale remains likely, it recommends waiting for a potential announcement before taking a more constructive stance on the stock.

Wells Fargo suggested shares could face pressure if First Horizon announces an acquisition, which the firm would view as "the better catalyst" for investors.

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 of $0.51, surpassing the forecasted $0.44, and achieved a revenue of $889 million, above the anticipated $847.27 million. Despite these strong results, Jefferies lowered its price target for First Horizon from $28.00 to $25.00, while maintaining a Buy rating, citing the bank’s reaffirmation of its full-year 2025 guidance. Similarly, Raymond James reduced its price target from $25.00 to $23.00, keeping an Outperform rating. This adjustment followed management comments hinting at potential "in-footprint tuck-in acquisitions," which contrasted with investor expectations of a near-term acquisition of First Horizon. These developments highlight the ongoing strategic considerations impacting First Horizon’s outlook.

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