FHN Stock Forecast & Price Target

First Horizon Corporation demonstrated a robust performance in consumer lending, reporting consumer loans of $15.0 billion, which represents 24% of total loans and increased by $243 million quarter-over-quarter in 2Q25, primarily driven by a $279 million rise in consumer real estate. Additionally, the company's strategic acquisition of IBERIA significantly bolstered its competitive position, adding 191 branches and expanding into four new states, thereby enhancing its presence in high-growth markets such as Texas and Florida. With consumer real estate accounting for 96% of total consumer loans and showing consistent growth, First Horizon is well-positioned to capitalize on favorable market conditions in the southern U.S.

First Horizon Corp has exhibited a lower projected earnings per share (EPS) growth of 10% for 2026, compared to the peer median EPS growth rate of 14%, indicating weaker financial performance relative to competitors. Additionally, the company's average deposits have decreased by approximately $1.1 billion, settling at $64.6 billion as of the second quarter of the year, which may hinder revenue generation. The increase in nonperforming assets, rising from $394 million in 3Q23 to a peak of $609 million in 1Q25, points to potential instability within its loan portfolio, particularly influenced by oversupply issues in the office and multifamily sectors.