The Analyst Verdict: First Horizon In The Eyes Of 6 Experts

In the last three months, 6 analysts have published ratings on First Horizon FHN, offering a diverse range of perspectives from bullish to bearish.

The table below provides a concise overview of recent ratings by analysts, offering insights into the changing sentiments over the past 30 days and drawing comparisons with the preceding months for a holistic perspective.

The 12-month price targets, analyzed by analysts, offer insights with an average target of $14.42, a high estimate of $17.00, and a low estimate of $13.50. This current average has increased by 15.36% from the previous average price target of $12.50.

Interpreting Analyst Ratings: A Closer Look

A clear picture of First Horizon's perception among financial experts is painted with a thorough analysis of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Analysts adapt their recommendations to changing market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their response to recent developments related to First Horizon. This information provides a snapshot of how analysts perceive the current state of the company.
• Rating: Offering a comprehensive view, analysts assess stocks qualitatively, spanning from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of First Horizon compared to the broader market.
• Price Targets: Analysts explore the dynamics of price targets, providing estimates for the future value of First Horizon's stock. This examination reveals shifts in analysts' expectations over time.

To gain a panoramic view of First Horizon's market performance, explore these analyst evaluations alongside essential financial indicators. Stay informed and make judicious decisions using our Ratings Table.

Stay up to date on First Horizon analyst ratings.

Unveiling the Story Behind First Horizon

First Horizon Corp is the parent company of First Tennessee Bank, a prominent regional bank with about 200 branches around Tennessee. The regional bank is responsible for roughly 65% of its revenue, while capital markets make a 25% contribution. The remainder is split between the firm's non-strategic (wind-down) and corporate operations. First Horizon concentrates on offering a variety of banking products mainly in its home state, where it has the second- largest deposit franchise with a 13% deposit market share.

Unraveling the Financial Story of First Horizon

Market Capitalization Analysis: Positioned below industry benchmarks, the company's market capitalization faces constraints in size. This could be influenced by factors such as growth expectations or operational capacity.

Revenue Challenges: First Horizon's revenue growth over 3 months faced difficulties. As of 30 September, 2023, the company experienced a decline of approximately -11.25%. This indicates a decrease in top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Financials sector.

Net Margin: The company's net margin is below industry benchmarks, signaling potential difficulties in achieving strong profitability. With a net margin of 17.04%, the company may need to address challenges in effective cost control.

Return on Equity (ROE): First Horizon's ROE is below industry standards, pointing towards difficulties in efficiently utilizing equity capital. With an ROE of 1.6%, the company may encounter challenges in delivering satisfactory returns for shareholders.

Return on Assets (ROA): First Horizon's ROA is below industry averages, indicating potential challenges in efficiently utilizing assets. With an ROA of 0.15%, the company may face hurdles in achieving optimal financial returns.

Debt Management: First Horizon's debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 0.25.

The Core of Analyst Ratings: What Every Investor Should Know

Analysts work in banking and financial systems and typically specialize in reporting for stocks or defined sectors. Analysts may attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish "analyst ratings" for stocks. Analysts typically rate each stock once per quarter.

Analysts may supplement their ratings with predictions for metrics like growth estimates, earnings, and revenue, offering investors a more comprehensive outlook. However, investors should be mindful that analysts, like any human, can have subjective perspectives influencing their forecasts.

This article was generated by Benzinga's automated content engine and reviewed by an editor.