Compass Point Downgrades First Horizon to Neutral
Compass Point lowers its rating on First Horizon (NYSE: FHN) to Neutral from Buy, reiterating its price target of $11, to reflect near term risk the company faces, although fundamentals are moving in the right direction, overall.
Compass Point says, "We upgraded FHN to buy on October 14, 2011 with an $11.00 price target. Since our upgrade, FHN is up 40.5% vs. the BKX up 15.3%. We are downgrading FHN as we no longer believe the stock offers enough upside to take into account the risk of further private label actions in the short-term. FHN disclosed that in addition to the previously known lawsuits, there has been 1 further lawsuit filed for private label securitizations and both the FDIC and the FHLB of San Francisco have requested documentation. We believe this risk overshadows short-term positive momentum in fundamentals."
FHN closed at $9.25 a share on Monday.
