FHN Stock Forecast & Price Target

First Horizon Corp demonstrated a strong financial performance with a significant increase in net interest income, rising by $34 million to $675 million, which surpassed both internal estimates and forecasts, reflecting a solid net interest margin growth of 15 basis points. The company reported a substantial quarter-over-quarter increase in core fee income of 13.2%, which added $25 million to total earnings, further highlighting robust operational performance. Additionally, the successful acquisition of IBERIA expanded First Horizon's footprint in high-growth markets, enhancing its competitive edge and long-term growth prospects in the southern U.S.

First Horizon Corporation's recent earnings call revealed unexpected messaging surrounding potential mergers and acquisitions (M&A), leading to a significant drop of over 9% in its share price, overshadowing otherwise positive fundamental trends. Despite a decrease in provision expenses and a slight decline in nonperforming assets, the company reported average deposits falling by approximately $1.1 billion year-to-date, indicating pressure on liquidity and customer confidence. Additionally, the company's projected earnings per share growth of 10% for 2026 remains below the peer median of 14%, further contributing to a negative outlook on its stock performance.