First Horizon: Hold Rating Amid Mixed Performance and Cautious Optimism

In a report released today, Ryan Nash from Goldman Sachs maintained a Hold rating on First Horizon, with a price target of $22.00.

Ryan Nash has given his Hold rating due to a combination of factors surrounding First Horizon’s recent performance and future outlook. The company’s earnings per share for the second quarter slightly exceeded expectations, and core pre-provision net revenue was higher than anticipated, primarily due to lower expenses. However, net interest income was only marginally above expectations, and core fee income was in line with forecasts, indicating stable but not exceptional revenue growth.
Despite the positive aspects, such as stronger-than-expected end-of-period loan growth and a slight improvement in tangible book value per share, there are concerns about rising deposit costs and their potential impact on net interest income. Additionally, while the company’s updated guidance suggests a positive outlook with flat to slightly increased expenses, the overall revenue trends remain broadly in line with expectations. These mixed signals contribute to the Hold rating, reflecting a cautious but optimistic stance on the stock’s future performance.

In another report released on July 11, Truist Financial also maintained a Hold rating on the stock with a $23.00 price target.