2023-05-24 10:14:20 ET
Jefferies on Wednesday upgraded First Horizon ( NYSE: FHN ) to Buy from Hold ahead of its annual shareholder meeting given its robust capital and attractive valuation.
"Though investor days rarely deliver as meaningful catalysts, we view FHN as unique as this will be the first time management provides guidance in 17 months post TD deal break," said analyst Casey Haire. "At 11.3% pro forma CET1, few banks can match FHN's capital strength."
Haire expects FY23 NIM outlook to come in below consensus (3.63% vs. 3.76% cons.) given a relatively weak liquidity profile. "Among peers, FHN has experienced outsized deposit runoff since Q4 2021 (18% vs. 4% peer avg.) and carries the weakest loan/deposit ratio (currently 96% vs. 82% peer avg.)"
Jefferies lowered its 2023/2024 EPS forecast for First Horizon ( FHN ) to $1.58/$1.57 (prior $1.85/$1.80, consensus $1.75/$1.72).
While Wall Street analysts are largely bullish on First Horizon ( FHN ), SA Quant rates it Sell, warning that it is at high risk of performing badly.
More on First Horizon
- First Horizon investor sues TD Bank over failed acquisition
- BofA resumes coverage of First Horizon at Buy as it is 'well-capitalized'
- First Horizon's Plunge Presents Calculated Buying Opportunity
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Jefferies turns bullish on First Horizon on robust capital, attractive valuation