Cracking The Code: Understanding Analyst Reviews For First Horizon

During the last three months, 10 analysts shared their evaluations of First Horizon FHN, revealing diverse outlooks from bullish to bearish.

The table below offers a condensed view of their recent ratings, showcasing the changing sentiments over the past 30 days and comparing them to the preceding months.

Analysts have set 12-month price targets for First Horizon, revealing an average target of $17.3, a high estimate of $19.00, and a low estimate of $16.00. This current average reflects an increase of 11.11% from the previous average price target of $15.57.

Exploring Analyst Ratings: An In-Depth Overview

The standing of First Horizon among financial experts is revealed through an in-depth exploration of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Responding to changing market dynamics and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their response to recent developments related to First Horizon. This offers insight into analysts' perspectives on the current state of the company.
• Rating: Offering a comprehensive view, analysts assess stocks qualitatively, spanning from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of First Horizon compared to the broader market.
• Price Targets: Gaining insights, analysts provide estimates for the future value of First Horizon's stock. This comparison reveals trends in analysts' expectations over time.

Understanding these analyst evaluations alongside key financial indicators can offer valuable insights into First Horizon's market standing. Stay informed and make well-considered decisions with our Ratings Table.

Stay up to date on First Horizon analyst ratings.

Unveiling the Story Behind First Horizon

First Horizon Corp is the parent company of First Tennessee Bank, a prominent regional bank with about 200 branches around Tennessee. The regional bank is responsible for roughly 65% of its revenue, while capital markets make a 25% contribution. The remainder is split between the firm's non-strategic (wind-down) and corporate operations. First Horizon concentrates on offering a variety of banking products mainly in its home state, where it has the second- largest deposit franchise with a 13% deposit market share.

Breaking Down First Horizon's Financial Performance

Market Capitalization Analysis: Below industry benchmarks, the company's market capitalization reflects a smaller scale relative to peers. This could be attributed to factors such as growth expectations or operational capacity.

Negative Revenue Trend: Examining First Horizon's financials over 3 months reveals challenges. As of 31 March, 2024, the company experienced a decline of approximately -4.66% in revenue growth, reflecting a decrease in top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Financials sector.

Net Margin: First Horizon's net margin is below industry standards, pointing towards difficulties in achieving strong profitability. With a net margin of 23.06%, the company may encounter challenges in effective cost control.

Return on Equity (ROE): First Horizon's ROE is below industry averages, indicating potential challenges in efficiently utilizing equity capital. With an ROE of 2.19%, the company may face hurdles in achieving optimal financial returns.

Return on Assets (ROA): First Horizon's ROA is below industry averages, indicating potential challenges in efficiently utilizing assets. With an ROA of 0.23%, the company may face hurdles in achieving optimal financial returns.

Debt Management: First Horizon's debt-to-equity ratio is below the industry average at 0.21, reflecting a lower dependency on debt financing and a more conservative financial approach.

The Significance of Analyst Ratings Explained

Analysts are specialists within banking and financial systems that typically report for specific stocks or within defined sectors. These people research company financial statements, sit in conference calls and meetings, and speak with relevant insiders to determine what are known as analyst ratings for stocks. Typically, analysts will rate each stock once a quarter.

In addition to their assessments, some analysts extend their insights by offering predictions for key metrics such as earnings, revenue, and growth estimates. This supplementary information provides further guidance for traders. It is crucial to recognize that, despite their specialization, analysts are human and can only provide forecasts based on their beliefs.

This article was generated by Benzinga's automated content engine and reviewed by an editor.