Morgan Keegan Maintains Outperform on First Horizon National Corp. (FHN)

Morgan Keegan is out with its report today on First Horizon National Corp. FHN, maintaining Outperform.

In a note to clients, Morgan Keegan writes, "We see upside in FHN shares as the growth and profitability outlook steadily improve over the coming quarters and mortgage putback risk subsides. We are recommending investors build positions now in FHN given the recent under-performance (FHN down 3.0% YTD vs. 0.1% YTD increase in BKX) primarily in our view, on mortgage putback risk concerns and pace of balance sheet growth. Our 12 month price target of $14 implies a conservative valuation of 1.6X YE11 TBV which is the current peer valuation and upside of 22% from current levels."

Shares of FHN closed Friday at $11.43, down 1.12% from Thursday's close.