FBR Capital Maintains a 'Market Perform' on First Horizon National (FHN); Credit Drives 1Q11 Earnings, Looking for Incremental Earnings Drivers

FBR Capital maintains a 'Market Perform' on First Horizon National (NYSE: FHN), PT $11.

FBR analyst says, "First Horizon reported GAAP EPS of $0.15 and, excluding a onetime gain related to debt extinguishment, operating EPS of $0.12, ahead of FBR and the Street's $0.04 estimate. Although revenues were flat quarter over quarter due to a $12.5 million hedging gain, revenue trends remain disappointing as most business lines were flat to slightly down, which was partially a result of a lower day count in the quarter. On a positive note, credit trends showed marked improvement as management continues to proactively address problem assets. However, we believe First Horizon continues to be relatively overexposed to potential losses given its robust pipeline of repurchase requests. Further, we remain concerned regarding the company's ability to generate earnings, especially given the weak macroeconomic and low rate environment."

For more ratings news on First Horizon National click here and for the rating history of First Horizon National click here.

Shares of First Horizon National closed at $10.35 yesterday.

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