Wells Fargo Upgrades First Horizon National (FHN) to Outperform; Compelling Capital Return And PPNR Expansion Story

Wells Fargo upgraded First Horizon National (NYSE: FHN) from Market Perform to Outperform, price target range raised to $10-11 from $9-10.

Wells analyst said, "FHN's robust capital base should allow substantially higher share buybacks in 2012/2013, materially improving capital returns. Aggressive cost reductions (aided by a shrinking non-strategic portfolio) should generate materially stronger PPNR expansion than peers. Still, FHN trades at a 40% P/TBV discount to peers."

"As a result of FHN’s excess capital position, we are now assuming FHN will buyback up to $235MM in shares from Q1 2012 through Q4 2013. As a result of this and expectations for more visible PPNR improvement, we are lifting our 2012 and 2013 EPS estimates to $0.70 and $1.00 from $0.65 and $0.90."

For an analyst ratings summary and ratings history on First Horizon National click here. For more ratings news on First Horizon National click here.

Shares of First Horizon National closed at $8.73 yesterday.

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