First Horizon has seen a subtle but meaningful shift in its outlook, as the fair value estimate for its stock was recently lowered from $25.07 to $24.32 per share. This adjustment reflects evolving analyst sentiment following recent earnings and an updated management strategy, with attention focused on revenue growth expectations and a slightly higher discount rate. Stay tuned to understand what is driving this narrative shift and how investors might keep track of future updates.

Recent analyst commentary on First Horizon reflects a mix of optimism and caution, as the bank's evolving strategic stance and earnings results have led to a notable shift in price targets and ratings.

???? Bullish Takeaways

BofA remains positive on First Horizon, reiterating a Buy rating with a $27 price target. The firm emphasizes the company's strategic optionality and suggests management is keeping multiple pathways open amid deal-making uncertainty.

Baird upgraded First Horizon to a "bullish fresh pick" with an Outperform rating and a $25 price target. They view the recent selloff as an opportunity to add exposure to what they consider one of the more attractive banking franchises, citing potential for a sale as a positive catalyst for shareholders.

Jefferies, while lowering its price target to $25 from $28, maintains a Buy rating due to strong Q3 results and the belief that First Horizon is still "in play as a target." The firm sees upside potential remains despite management signaling interest in acquisitions.

Raymond James continues to rate the stock as Outperform with a new $23 price target, highlighting the company’s benefit from lower rates, expectations for steady loan growth in 2026, and the enduring scarcity value of the franchise.

???? Bearish Takeaways

Evercore ISI downgraded First Horizon to In Line from Outperform and lowered the price target to $20 from $26. They point to a lack of meaningful upside catalysts and now view a near-term sale of the bank as unlikely, seeing current valuation as fair.

Keefe Bruyette cut its price target to $23 from $24 and maintains a Market Perform rating. The firm comments that while the expected merger and acquisition premium has declined, the stock's risk is not fully removed.

DA Davidson recently initiated coverage with a Neutral rating and a $24 price target, noting that despite progress in organic growth, valuation remains a concern as the stock trades at a premium relative to regional banking peers.

Taken together, analysts diverge over First Horizon’s potential as a buyer or a seller in the current environment. Bullish commentary underscores franchise value and downside protection, while bearish notes emphasize limited catalysts and valuation headwinds.

Do your thoughts align with the Bull or Bear Analysts? Perhaps you think there's more to the story. Head to the Simply Wall St Community to discover more perspectives or begin writing your own Narrative!

First Horizon executed a major share repurchase, buying back nearly 33 million shares, equivalent to 6.33% of its outstanding shares, for $688.11 million as part of its stock buyback program announced in late October 2024.

The company reported third-quarter net charge-offs of $26 million as of September 30, 2025, a slight increase compared to $24 million in the same quarter last year.

Full-year 2025 revenue guidance remains intact, with management anticipating revenues will be flat or potentially rise by up to 4% compared to the prior year.

First Horizon revealed plans to move to a new office location on East Boulevard in Charlotte’s South End, consolidating two existing offices, with the relocation and transition to a modern 250-workspace facility targeted for the first half of 2026.

Fair Value Estimate: Lowered from $25.07 to $24.32 per share, reflecting a minor decrease.

Discount Rate: Increased slightly from 6.88% to 7.01%. This indicates a modestly higher perceived risk.

Revenue Growth: Reduced from 6.61% to 5.54%. This represents a notable decrease in expected top-line expansion.

Net Profit Margin: Improved from 26.70% to 27.44%. This suggests enhanced profitability assumptions.

Future P/E Ratio: Declined from 13.68x to 12.15x. This signals a lower anticipated valuation multiple for forward earnings.

Narratives are stories investors create to explain a company’s future by connecting its business outlook, financial forecasts, and fair value in a simple, accessible way. On Simply Wall St, millions use Narratives in the Community page to weigh up when a stock is undervalued or overvalued. As new news and earnings roll in, Narratives update dynamically to help you make timely buy or sell decisions based on both numbers and context.

Read the original Narrative for First Horizon and stay in the loop on:

How First Horizon’s deposit cost management and share buyback program may boost earnings and net interest margins.

What mixed analyst sentiment means for sale, acquisition, or organic growth strategies and the impact on valuation.

Which key risks could shift future earnings, from credit losses and macroeconomic headwinds to evolving industry trends.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Companies discussed in this article include FHN.

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