RBC Maintains Outperform on First Horizon Stock
RBC Capital has continued to express confidence in First Horizon National Corp (NYSE:FHN), holding firm on its Outperform rating while maintaining a price target of $18.00. This affirmation of the bank’s potential comes on the back of recent investor meetings, which showcased First Horizon’s strategic prowess and financial resilience following the halted merger with TD Bank the previous year.
The discussions were spearheaded by Chairman, President, and CEO Bryan Jordan, CFO Hope Dmuchowski, and Head of IR Natalie Flanders. Key highlights from these meetings shed light on First Horizon’s attractive valuation and its prime position to leverage significant asset repricing opportunities. Moreover, the bank’s consistent deposit pricing trends are set to buttress a promising rise in margins.
Beyond the financials, there’s an optimistic forecast for a moderate uptick in fee income, complemented by controlled operational expenses and stable credit costs. Such facets of First Horizon’s operations underpin its sturdy financial framework. Notably, the bank’s robust capital levels, outstripping those of its competitors, underlie the continuation of its stock buyback program, indicating an unwavering commitment to enhancing shareholder value.
RBC’s steadfast rating and price target echo its belief in First Horizon’s strategic and financial solidity. The bank’s executive team painted a picture of resilience and growth potential, instilling a renewed sense of optimism among investors regarding First Horizon’s market position and outlook.
Reinforcement of RBC Capital’s positive sentiment comes through loud and clear with First Horizon’s near 52-week high trading price at $15.91. The market has welcomed the bank’s accomplishments, evidenced by a striking one-year price total return of 54.28%, validating RBC’s confidence in the bank’s growth trajectory and recovery dynamism.
In the realm of analyst expectations, there’s a noticeable upward revision in earnings forecasts for First Horizon, suggesting a bullish outlook on its financial health. Additionally, the bank’s unwavering dividend payments over 14 consecutive years speak volumes about its dedication to returning value to its shareholders. This consistent dividend track record, combined with a current yield of 3.75%, stands out to those with an eye on income generation.
First Horizon’s compelling P/E ratio of 10.99 indicates its market valuation is within reasonable bounds. Analysts’ projections of profitability for the forthcoming year, anchored by a solid performance over the past twelve months, signify the bank’s continued fiscal health and operational success.
For those keen on exploring First Horizon’s market potential further, engaging with the bank’s financial narrative reveals a story of resilience, strategic acumen, and enduring shareholder value, offering a compelling case for investors seeking robust returns and stability in the banking sector.
