First Horizon National (FHN) PT Raised to $23 at RBC Capital

RBC Capital analyst Jon Arfstrom raised the price target on First Horizon National (NYSE: FHN) to $23.00 (from $22.00) while maintaining a Outperform rating.

The analyst said: "At a recent investor conference, First Horizon introduced a new FY2025 outlook for key line items. The company’s updated presentation can be found here. Specifically, the outlook calls for FY25 adjusted revenues (ex-deferred compensation) to be flat to 4% higher, adjusted expenses (ex-deferred comp) to increase 2–4%, net charge-offs of 15–25 bps, a tax rate of 21–23%, and the CET1 ratio to decline to 10.5–11.0%. These expectations assume an additional rate cut in December 2024, as well as three rate cuts in 2025, on top of modest balance sheet growth (low-single-digit percentage loan growth and slightly better deposit growth). We believe the 2025 outlook is reasonable and relatively consistent with our expectations, though we note that the 3Q24 CET ratio of 11.2% suggests potential for more aggressive buyback activity than previously expected in 2025, with ~$146 million in repurchases already quarter-to-date.

Incorporating the updated outlook, we raise our 2025E EPS from $1.65 to $1.70 and 2026E EPS from $1.80 to $1.85. Our price target increases from $22 to $23."

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