On Monday, RBC Capital maintained its positive stance on First Horizon National Corp (NYSE:FHN), reiterating an Outperform rating with a steady price target of $18.00. The endorsement follows recent investor meetings with the bank's top executives, where the consistent and upbeat tone underscored First Horizon's recovery momentum after the halted merger with TD Bank last year.
The discussions, led by Chairman, President, and CEO Bryan Jordan, along with CFO Hope Dmuchowski and Head of IR Natalie Flanders, highlighted several key takeaways. First Horizon is seen to hold a reasonable valuation and is poised to benefit from significant asset repricing opportunities. The bank also exhibits consistent deposit pricing trends, which are likely to contribute to a rising margin.
In addition to these financial prospects, there is an anticipation of some potential increase in fee income. This comes alongside controlled expenses and stable credit costs, which further solidify the bank's financial health. First Horizon is also noted to have higher capital levels compared to its peers, which supports its continued stock buyback program.
RBC's reaffirmed rating and price target reflect confidence in First Horizon's strategic direction and financial stability. The bank's leadership team conveyed a message of resilience and growth potential, emphasizing the positive update to investors.
InvestingPro Insights
Reinforcing RBC Capital's positive outlook on First Horizon National Corp (NYSE:FHN), real-time data from InvestingPro shows a company that's trading near its 52-week high, with a recent price close of $15.91. The market has responded well to the bank's performance, with a robust one-year price total return of 54.28%. This aligns with RBC's recognition of the bank's recovery momentum and potential for growth.
InvestingPro Tips highlight that analysts have revised their earnings upwards for the upcoming period, reflecting confidence in First Horizon's financial prospects. Additionally, the bank has maintained dividend payments for 14 consecutive years, which is indicative of its commitment to shareholder returns. This consistency in dividends, coupled with a current dividend yield of 3.75%, may appeal to income-focused investors.
First Horizon's current P/E ratio stands at 10.99, suggesting a reasonable valuation in the market. With analysts predicting profitability for the year and a history of profitability over the last twelve months, the bank's financial health seems to be on solid footing. For readers looking to delve deeper into First Horizon's potential, there are additional InvestingPro Tips available at https://www.investing.com/pro/FHN, and by using the coupon code PRONEWS24, you can get an extra 10% off a yearly or biyearly Pro and Pro+ subscription.
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