First Horizon stock price target lowered to $25 at Jefferies on M&A stance By Investing.com
Key Takeaways
- Jefferies lowered First Horizon's price target to $25.00 but maintained a Buy rating.
- First Horizon reported strong third-quarter results, beating EPS and revenue expectations.
- The stock declined because management signaled interest in making acquisitions, contrary to market expectations that FHN might be acquired.
- Jefferies sees the management's acquisition interest as a 'near term overhang' but notes the lower valuation could keep FHN as an acquisition target.
- Raymond James also lowered its price target for FHN to $23.00 while maintaining an Outperform rating.
Jefferies adjusted its price target for First Horizon National (FHN) down to $25.00 from $28.00 but maintained a Buy rating following the bank's strong third-quarter performance, which included beating EPS and revenue expectations. The bank reaffirmed its full-year 2025 guidance, demonstrating robust performance over the past six months. However, FHN shares declined after management suggested pursuing bank acquisitions, contradicting investor hopes that the company would be an acquisition target. Jefferies views this strategic pivot as a near-term overhang but notes the resulting lower valuation might keep FHN in play as a target for others. Raymond James also lowered its price target to $23.00 while keeping an Outperform rating, reflecting similar concerns about the strategic divergence from market expectations.
