First Horizon Receives Buy Rating from Bank of America Securities

Bank of America Securities analyst Ebrahim Poonawala reiterated a Buy rating for First Horizon with a price target of $27.00 due to strong future performance, accelerated loan growth, and strategic positioning in the Southeastern market. The analyst cites favorable risk-reward profile and potential for mergers and acquisitions, as well as management's focus on maintaining a strong capital position.

Title: First Horizon National Corporation Surpasses Q2 2025 Earnings Expectations

July 02, 2025 - First Horizon National Corporation (FHN) reported its second-quarter 2025 earnings, surpassing analysts' expectations with an earnings per share (EPS) of $0.45, compared to the forecasted $0.42. The company’s revenue slightly missed projections, coming in at $830 million against the expected $831.93 million. Following the earnings announcement, First Horizon’s stock rose in pre-market trading, gaining 3.3% to $21.92 [1].

The EPS of $0.45 was a positive surprise, exceeding the forecast by 7.14%. This beat reflects the company’s effective cost management and revenue generation strategies. However, revenue fell short of expectations by 0.23%, a minor miss that did not significantly impact investor sentiment. The stock remains within its 52-week range, with a high of $22.44 and a low of $14.34.

First Horizon demonstrated solid performance in Q2 2025, with notable growth in net interest income and period-end loan and deposit balances, each rising by 2% quarter-over-quarter. The company, currently valued at $11.01 billion, continued to focus on expense management, achieving only a $4 million increase in expenses despite ongoing investments in technology and marketing. The net interest margin slightly compressed to 3.4%, yet the overall financial health remained robust. Trading at a P/E ratio of 15.05, InvestingPro analysis suggests the stock may be slightly undervalued.

The company maintained strong financial discipline with modest expense growth. Future guidance remains optimistic with targets for significant pre-provision net revenue (PPNR) improvement. Brian Jordan, Chairman, President, and CEO, expressed confidence in the company’s trajectory, stating, "Our focus remains on safety and soundness, profitability, and sustainable growth." Hope Dzumchowski, Chief Financial Officer, highlighted growth opportunities, saying, "We see opportunities to grow our PPNR by $100 million or more over the coming years."

Bank of America Securities analyst Ebrahim Poonawala reiterated a Buy rating for First Horizon with a price target of $27.00 due to strong future performance, accelerated loan growth, and strategic positioning in the Southeastern market. The analyst cites favorable risk-reward profile and potential for mergers and acquisitions, as well as management's focus on maintaining a strong capital position.

References:
[1] https://www.investing.com/news/transcripts/earnings-call-transcript-first-horizon-beats-eps-forecast-in-q2-2025-93CH-4138009