In a report released today, Ben Gerlinger from Citi maintained a Buy rating on First Horizon, with a price target of $28.00.
Claim 70% Off TipRanks Premium
- Unlock hedge fund-level data and powerful investing tools for smarter, sharper decisions
- Stay ahead of the market with the latest news and analysis and maximize your portfolio's potential
Ben Gerlinger has given his Buy rating due to a combination of factors related to earnings power, capital strength, and valuation. He modestly raised his earnings forecasts after revising assumptions for loan growth and net interest margin, reflecting confidence in the bank’s ability to benefit from improved asset mix and prudent balance sheet management. He also expects share repurchases to increase in late 2025 based on recent management commentary, which should enhance earnings per share and shareholder returns.
In addition, Gerlinger slightly reduced his expense expectations, indicating an improved efficiency outlook that supports better profitability. His updated modeling incorporates a lower equity beta and a somewhat stronger long-term capital position, which together reduce the perceived risk profile of the stock. These revisions lead to a higher target price of $28, implying an attractive expected total return of about 16%, which underpins his Buy recommendation on First Horizon shares.
In another report released on December 19, Barclays also maintained a Buy rating on the stock with a $28.00 price target.