A Closer Look at 10 Analyst Recommendations For First Horizon

During the last three months, 10 analysts shared their evaluations of First Horizon FHN, revealing diverse outlooks from bullish to bearish.

The following table encapsulates their recent ratings, offering a glimpse into the evolving sentiments over the past 30 days and comparing them to the preceding months.

Analysts have recently evaluated First Horizon and provided 12-month price targets. The average target is $19.75, accompanied by a high estimate of $23.00 and a low estimate of $17.00. Witnessing a positive shift, the current average has risen by 3.4% from the previous average price target of $19.10.

Diving into Analyst Ratings: An In-Depth Exploration

An in-depth analysis of recent analyst actions unveils how financial experts perceive First Horizon. The following summary outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Analysts respond to changes in market conditions and company performance, frequently updating their recommendations. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to First Horizon. This information offers a snapshot of how analysts perceive the current state of the company.
• Rating: Analysts unravel qualitative evaluations for stocks, ranging from 'Outperform' to 'Underperform'. These ratings offer insights into expectations for the relative performance of First Horizon compared to the broader market.
• Price Targets: Analysts navigate through adjustments in price targets, providing estimates for First Horizon's future value. Comparing current and prior targets offers insights into analysts' evolving expectations.

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.

A Deep Dive into First Horizon's Financials

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 displayed positive results in 3 months. As of 30 September, 2024, the company achieved a solid revenue growth rate of approximately 4.42%. This indicates a notable increase in the company's top-line earnings. When compared to others in the Financials sector, the company faces challenges, achieving a growth rate lower than the average among peers.

Net Margin: First Horizon's net margin lags behind industry averages, suggesting challenges in maintaining strong profitability. With a net margin of 25.76%, the company may face hurdles in effective cost management.

Return on Equity (ROE): The company's ROE is below industry benchmarks, signaling potential difficulties in efficiently using equity capital. With an ROE of 2.53%, the company may need to address challenges in generating 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 0.26%, the company may face hurdles in achieving optimal financial returns.

Debt Management: With a below-average debt-to-equity ratio of 0.22, First Horizon adopts a prudent financial strategy, indicating a balanced approach to debt management.

Understanding the Relevance of Analyst Ratings

Within the domain of banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their work involves attending company conference calls and meetings, researching company financial statements, and communicating with insiders to publish "analyst ratings" for stocks. Analysts typically assess and rate each stock once per quarter.

Some analysts will also offer forecasts for metrics like growth estimates, earnings, and revenue to provide further guidance on stocks. Investors who use analyst ratings should note that this specialized advice comes from humans and may be subject to error.

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