First Horizon National (FHN) PT Raised to $16 at Baird

Baird analyst Brennan Crowley raised the price target on First Horizon National (NYSE: FHN) to $16.00 (from $15.00) while maintaining a Neutral rating.

The analyst commented: "Core results in line with NII improvement, normalizing credit losses, and improved FY2024 fee outlook. Reported Q124 EPS ($0.33) was in-line with our expectations as higher-than-expected fees were partially offset by softer credit trends, on both charge-offs and provisions. Today’s print reiterated that FHN is likely past its PPNR trough, and we expect sequential NII growth from here depending on the pace/timing of rate cuts, deposit mix/cost, and loan growth. We appreciate the accelerated buybacks during the quarter (nearly ~25% of authorization) and guidance raise, but the fee outlook raise fell short of our expectations. The franchise is executing well on its current initiatives but the risk/reward looks just OK following the recent outperformance, and we would prefer other regionals with more significant upside."

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