First Horizon National (FHN) Cut To 'Hold' By Deutsche Bank
Thursday, January 26, 2022 2:28 PM



Deutsche Bank (DB) downgraded its rating on First Horizon National Corp. (NYSE:FHN) to "Hold" from "Buy".

Matt O'Connor, an analyst at DB, said the stock is up 15% YTD (and 55% since early Oct) given aggressive share buybacks and some easing of mortgage putback concerns.

"But the impact of buybacks could be less meaningful," he wrote. In addition, net interest income may be flattish for a few quarters, loan loss provision expenses will start to creep up and a meaningful decline in expenses will depend on lower mortgage putback costs, O'Connor said.

O'Connor has a price target of $8.50 on the stock.

"Over time, the combination of excess capital (Tier 1 common of 11.7%) and a patient mgmt team should provide good EPS upside--but this may take a while to play out," O'Connor wrote in a note.

FHN shares, which have been trading in the 52-week range between $5.38 and $11.95, dropped 4.7% to trade at $8.69 on Thursday.


 

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