UPDATE: Compass Point Upgrades First Horizon National to Neutral After Weak 1Q13 Results

In a report published Monday, Compass Point analyst Mike Turner upgraded the rating on First Horizon National Corporation

from Sell to Neutral, and slightly raised the price target from $9.50 to $10.00. In the report, Turner noted, “1Q13 results fell below expectations on increased NIM compression and lower than expected loan growth. Looking forward, we continue to believe there are several items that could be a source of disappointment. Namely, additional declines in the mortgage warehouse balances (in FY14), the possibility of a slowdown in share repurchases in FY14 (due to the new stress tests), continued pressure on new origination yields and the seemingly ignored private label risk. However, despite our apparent negativity, we believe we have factored in many of these items into our forecast. Trading at 11x our FY14 EPS estimate, we believe shares are now fair-to-fully valued. Thus, we are upgrading our rating from Sell to Neutral. We remain cautious though as expense saves and buybacks are largely known and factored into estimates, and revenues could continue to disappoint.” First Horizon National Corporation closed on Friday at $9.90.