FHN Stock Forecast & Price Target

First Horizon Corp demonstrated a notable increase in net interest income, rising by $34 million to $675 million, which exceeded forecasts and reflected a 15 basis point improvement in net interest margin. The company's total book value increased by 2.7% quarter-over-quarter to $13.94, and core fee income rose 13.2% to $214 million, also surpassing expectations. Additionally, the strategic acquisition of IBERIA expanded First Horizon's market presence and competitive position in key growth states, further reinforcing the bank's positive financial trajectory.

First Horizon Corp's recent earnings call revealed unexpected messaging regarding mergers and acquisitions, which adversely affected its stock price, resulting in a decline of over 9%. Although the company demonstrated a decrease in provision expenses with a $5 million benefit and a slight reduction in nonperforming assets, the growth forecast for earnings per share (EPS) remains below the peer median, indicating potential struggles in overall profitability. Additionally, a significant drop in average deposits, down $1.1 billion year-to-date, raises concerns about the bank's liquidity and attractiveness to customers, further supporting a negative outlook on the stock.