Peeling Back The Layers: Exploring First Horizon Through Analyst Insights

Throughout the last three months, 7 analysts have evaluated First Horizon FHN, offering a diverse set of opinions from bullish to bearish.

The table below provides a snapshot of their recent ratings, showcasing how sentiments have evolved over the past 30 days and comparing them to the preceding months.

Insights from analysts' 12-month price targets are revealed, presenting an average target of $17.79, a high estimate of $19.00, and a low estimate of $16.00. Observing a downward trend, the current average is 3.47% lower than the prior average price target of $18.43.

Decoding Analyst Ratings: A Detailed Look

The perception of First Horizon by financial experts is analyzed through recent analyst actions. The following summary presents key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Analysts frequently update their recommendations based on evolving market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to First Horizon. This information provides a snapshot of how analysts perceive the current state of the company.
• Rating: Gaining insights, analysts provide qualitative assessments, ranging from 'Outperform' to 'Underperform'. These ratings reflect expectations for the relative performance of First Horizon compared to the broader market.
• Price Targets: Analysts set price targets as an estimate of a stock's future value. Comparing the current and prior price targets provides insight into how analysts' expectations have changed over time. This information can be valuable for investors seeking to understand consensus views on the stock's potential future performance.

For valuable insights into First Horizon's market performance, consider these analyst evaluations alongside crucial financial indicators. Stay well-informed and make prudent 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.

First Horizon: Financial Performance Dissected

Market Capitalization Analysis: Reflecting a smaller scale, the company's market capitalization is positioned below industry averages. This could be attributed to factors such as growth expectations or operational capacity.

Revenue Growth: First Horizon's revenue growth over a period of 3 months has been noteworthy. As of 30 June, 2024, the company achieved a revenue growth rate of approximately 1.15%. This indicates a substantial increase in the company's top-line earnings. In comparison to its industry peers, the company stands out with a growth rate higher than the average among peers in the Financials sector.

Net Margin: First Horizon's net margin falls below industry averages, indicating challenges in achieving strong profitability. With a net margin of 23.23%, the company may face hurdles in effective cost management.

Return on Equity (ROE): First Horizon's ROE lags behind industry averages, suggesting challenges in maximizing returns on equity capital. With an ROE of 2.22%, the company may face hurdles in achieving optimal financial performance.

Return on Assets (ROA): First Horizon's ROA lags behind industry averages, suggesting challenges in maximizing returns from its assets. With an ROA of 0.22%, the company may face hurdles in achieving optimal financial performance.

Debt Management: First Horizon's debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 0.38.

Analyst Ratings: What Are They?

Analysts are specialists within banking and financial systems that typically report for specific stocks or within defined sectors. These people research company financial statements, sit in conference calls and meetings, and speak with relevant insiders to determine what are known as analyst ratings for stocks. Typically, analysts will rate each stock once a quarter.

Beyond their standard evaluations, some analysts contribute predictions for metrics like growth estimates, earnings, and revenue, furnishing investors with additional guidance. Users of analyst ratings should be mindful that this specialized advice is shaped by human perspectives and may be subject to variability.

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