First Horizon (FHN) Shares Surge 2.52% on Analyst Upgrades, Earnings Resilience

First Horizon Corporation (FHN) shares surged 2.52% on Wednesday, extending a two-day rally that has lifted the stock by 4.31% since Monday. Prices reached their highest level since September 2025 intraday, with a 2.60% gain observed during the session, reflecting renewed investor confidence in the regional banking sector.

The upward momentum follows a series of analyst upgrades, including price target increases from Truist Financial, Bank of America, and JPMorgan Chase, which collectively raised their estimates by $2 to $8. These revisions underscore improved sentiment around FHN’s earnings resilience and capital strength. Recent quarterly results highlighted a $0.45 EPS beat and a 17.1% net margin, reinforcing the stock’s appeal as a defensive play in the financial sector.

Institutional demand has also bolstered FHN’s performance, with entities like Kestra Investment Management and Geneos Wealth Management significantly expanding their holdings. Over 80% of shares are now owned by institutional investors, signaling broad validation of the company’s strategic direction. First Horizon’s 2.7% dividend yield, supported by a sustainable payout ratio of 38.71%, further attracts income-focused investors in a low-interest-rate environment.

Regulatory and operational developments have added to the stock’s resilience. The bank’s 9.7% CET1 capital ratio, well above regulatory minimums, and its $4 billion pre-tax loss absorption capacity highlight its robust financial position. Recent leadership changes, including the appointment of a new Head of Consumer Banking and board expansions, signal a focus on growth and operational efficiency. These factors position FHN to capitalize on its competitive advantages in regional banking while navigating macroeconomic uncertainties with disciplined cost management.