UPDATE: Citigroup Raises PT to $9, Maintains Neutral on First Horizon National

Citigroup reiterates its Neutral rating on First Horizon National (NYSE: FHN) and raises its price target to $9 from $6.75 a share as the company makes solid progress on refocusing efforts, although upside remains limited.

Citigroup says, "We are raising our target price to $9 to reflect lower cost of equity/equity risk premium for the group as well as slightly higher estimates reflecting better-than-expected progress on expense initiatives. FHN has shown significant progress working through legacy issues and refocusing on the core franchise. In addition, the $44 mil buyback is a positive, with the Tier 1 common ratio of 11.7%, well-above the 8-9% target. However, it is unclear how much capital return regulators will ultimately authorize."

FHN closed at $9.01 a share on Tuesday.