- Price action and momentum suggest that after a monthly correction, First Horizon can recover faster than its peers.
- I don't doubt that dividend payments will grow >3.8% in the foreseeable future, which in turn suggests that with the cost of equity of 7.5% (or below), FHN becomes undervalued.
- Relative valuation says FHN is clearly performing better than the industry average, while trading at a multiple below the industry average. This fact also suggests a possible undervaluation.
- I recommend buying First Horizon's stock at its current levels.
For further details see:
First Horizon: Sustainable Yield Plus Favorable Relative Valuation