FBR Capital Maintains a 'Market Perform' on First Horizon National (FHN); Waiting for Earnings Growth While Credit Improves

FBR Capital maintains a 'Market Perform' on First Horizon National (NYSE: FHN), PT lowered by $1 to $10.

FBR analyst says, "Operating revenues fell as lower capital markets revenue was only partially offset by an increase in mortgage banking fees. On a positive note, credit trends continue to improve as management addresses problem assets. We remain concerned regarding First Horizon's relative overexposure to potential reps and warrants losses given its robust pipeline of requests and steady loss rate. Additionally, we wonder if the company can generate core earnings and become more efficient, especially in today's low rate, weak macroeconomic environment. The reps and warrants exposure coupled with FHN's uncertain earnings power represent a headwind to shares, causing us to stay on the sidelines for the time being. In light of 2Q11 earnings, we are adjusting our FY11 operating EPS estimate to $0.45 from $0.40 and our FY12 EPS estimate to $0.65 from $0.70."

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 $9.60 yesterday.

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