UPDATE: Morgan Keegan Raises Target on First Horizon to $12

Morgan Keegan reiterates its Outperform rating on First Horizon

and raises its price target by $1 to $12 following investor meetings with the company's management. Morgan Keegan notes, "While bears continue to point to the GSE and private label mortgage repurchase risk at FHN, we believe losses should remain very manageable and not be a capital issue. We estimate a reasonable range for future losses from GSE putbacks of $0.14-$0.62 per share, with FHN remaining in a strong position to return significant capital to shareholders. We would be aggressive buyers on pullbacks at 8.1x our 2013 EPS estimate and 1.1x TBV versus the 12.2x 2013 EPS and 1.4x TBV median of MK Mid-cap peers." FHN closed at $9.31 a share on Friday.