First Horizon (FHN) Surges 2.80% on Analyst Upgrades, Strong Earnings and Institutional Buying

The share price rose to its highest level so far this month, with an intraday gain of 3.11%.

First Horizon (FHN) has climbed 2.80% over two trading days, driven by analyst upgrades, strong earnings, and institutional investor activity. Recent price target increases from Citigroup and JPMorgan, alongside a $1.2 billion share buyback program, signaled renewed confidence in the bank’s value. The stock’s 52-week high reached on Jan. 5, $24.8550, reflects improved sentiment, with an average analyst target of $25.41 implying a 5.7% upside. Institutional ownership now accounts for 80.28% of shares, bolstered by stakes from UBS, Norges Bank, and LSV Asset Management.

FHN’s robust financials underpin its appeal, including a 14.89 price-to-earnings ratio and a beta of 0.61, suggesting lower volatility than the market. A 36.36% dividend payout ratio and conservative debt-to-equity ratio of 0.15 highlight its disciplined capital management. However, rising interest expenses and economic headwinds in the banking sector could temper momentum. Analysts remain cautiously optimistic, balancing risks with the company’s resilient earnings and strategic initiatives like buybacks and dividend payouts. Investors are advised to monitor quarterly reports and macroeconomic developments for further clarity on sustainability.