In the past three months, a group of ten analysts have offered their evaluations of First Horizon (FHN), showcasing a range of perspectives from bullish to bearish. These varied insights reveal the changing attitudes within the analyst community. Notably, eight analysts have expressed somewhat bullish outlooks, while two have been indifferent. Over this period, there have been no ratings falling into the somewhat bearish or bearish categories. The most recent reviews indicate a slight uptick in positive sentiment compared to previous months.
In reviewing the specifics of stock recommendations over the last 30 days, two analysts have provided updated evaluations, following from a greater number of updates in prior months. A deep dive into these assessments reveals a collective average 12-month price target for First Horizon at $19.75. This target represents a positive shift of 3.4% compared to the former average estimate of $19.10. The highest target set by any analyst is $23.00, with the lowest at $17.00, reflecting a diverse range of expectations regarding First Horizon's potential growth.
Recent activities from analysts provide a clearer view of the company's prospects. Key analysts have made notable updates, indicating adjustments in their ratings and price targets. For instance, Jared Shaw of Barclays has upgraded his rating to 'Overweight', with a new price target of $23.00, up from $21.00. Similarly, Michael Rose from Raymond James raised his outlook to 'Outperform', adjusting his target from $19.00 to $22.00. These movements suggest a consensus towards a more favorable outlook for First Horizon, supported by several boosts in targets across multiple analysts.
Aside from the ratings, First Horizon Corp, the parent company of First Tennessee Bank, has shown crucial financial statistics that warrant attention. With about 200 branches across Tennessee, the bank generates approximately 65% of its revenue from regional banking, supported by a 13% deposit market share. Despite operating on a smaller scale with a market capitalization below industry norms, First Horizon achieved a revenue growth of 4.42% by the end of September 2024. This rate, while positive, lags behind average growth within the sector, suggesting room for expansion.
However, First Horizon faces operational challenges, as reflected in its profitability metrics. The company's net margin stands at 25.76%, indicating some difficulty in sustaining robust profit margins. Likewise, Return on Equity (ROE) and Return on Assets (ROA) are positioned below industry averages, pointing towards inefficiencies in capital and asset utilization. Notably, First Horizon maintains a conservative debt-to-equity ratio of 0.22, suggesting disciplined debt management practices.
The significance of analyst ratings in the financial sector cannot be understated. Analysts focus on specific stocks or sectors through detailed research and insider communication, publishing quarterly ratings that guide investors. These evaluations provide insights into stock performance relative to broader market dynamics. Moreover, some analysts offer additional forecasts on growth, earnings, and revenue metrics to aid decision-making. Investors should, however, recognize that such advice, while expert-driven, still carries the potential for error.
