Citi boosts First Horizon National shares target by 5%, maintaining Buy rating with a positive growth outlook

Published 17/10/2024, 12:30
Citi boosts First Horizon National shares target by 5%, maintaining Buy rating with a positive growth outlook

On Thursday, Citi showed continued confidence in First Horizon National (NYSE:FHN) by increasing the bank's price target from $19.00 to $20.00. The firm sustained its Buy rating on the stock, signaling optimism about the company's prospects. The adjustment comes after a review of First Horizon's third-quarter results and end-of-period (EOP) balance sheet, which were slightly softer than anticipated.

The bank's third-quarter performance, coupled with insights on deposit pricing trends, has reinforced the belief that, despite a less favorable interest rate forecast, First Horizon is on track to maintain steady pre-provision net revenue (PPNR) growth through 2025. According to Citi's analysis, while net interest income (NII) may experience some weakness until interest rates stabilize, this is expected to be largely offset by the ongoing improvement in fee income businesses.

Citi's statement emphasized the resilience of First Horizon's business model, noting that the bank has demonstrated its strength across its operations. The analyst highlighted that even with potential revenue decreases due to narrower interest spreads, the bank's diverse income streams should help mitigate most of the impact.

First Horizon's ability to navigate the current economic environment has been attributed to its strong presence in regions that are experiencing economic growth. This geographic advantage is seen as a key factor in the bank's ability to sustain growth and deliver value to shareholders.

The new price target of $20.00 reflects Citi's belief in the bank's potential for continued financial performance and growth. This sentiment is backed by First Horizon's solid business model and strategic positioning in favorable markets.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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