First Horizon CEO M&A comments ‘rude shock’ to some investors, says BofA

BofA notes that First Horizon (FHN) shares sold off during the earnings call when CEO Bryan Jordan indicated interest in pursuing M&A as a potential buyer, which “came as a rude shock to some investors who own the stock on hopes for a takeout premium.” However, management’s comments were not particularly different that what was previously stated at an industry conference on September 9 and the firm views the comments as management giving itself strategic optionality given the inherent uncertainty around deal-making. BofA keeps a Buy rating and $27 price target on First Horizon shares.