FHN Stock Forecast & Price Target

First Horizon Corp demonstrated a robust financial performance, with net interest income rising by $34 million to reach $675 million, exceeding forecasts, primarily driven by a 15 basis point increase in the net interest margin to 3.55%. The company's consumer loans, particularly in consumer real estate, showed significant growth, contributing to 24% of total loans, while core fee income saw a healthy increase of 13.2%, reflecting strong operational capabilities. Additionally, the company’s strong capital position is highlighted by the remaining $300 million in its share buyback authorization and a tangible book value increase of 2.7% quarter-over-quarter, positioning it favorably for future growth.

First Horizon's stock outlook is negatively impacted by unexpected comments regarding mergers and acquisitions during its earnings call, which led to a drop of over 9% in share price, overshadowing otherwise positive fundamental trends. The company's earnings per share growth forecast for 2026 is projected at 10%, which is below the peer median growth rate of 14%, indicating a relative underperformance. Furthermore, average deposits have decreased by approximately $1.1 billion, raising concerns about the bank's deposit stability and overall financial health.