FHN Stock Forecast & Price Target

First Horizon Corp reported a notable increase in net interest income, rising by $34 million quarter-over-quarter to reach $675 million, significantly surpassing forecasts, driven by a 15 basis point increase in net interest margin. Additionally, the company demonstrated robust growth in core fee income, which increased 13.2% to $214 million, further indicating strong operational performance. With a healthy $300 million remaining in share buyback authorization and an increase in tangible book value to $13.94, First Horizon's financial metrics highlight a solid foundation for continued growth and shareholder value.

First Horizon Corp's stock experienced a significant decline of over 9% following unexpected comments regarding mergers and acquisitions during the 3Q25 earnings call, overshadowing positive trends in their quarterly results. The company's provision expense revealed a notable decrease of $35 million quarter-over-quarter; however, the projected EPS growth of 10% for 2026 falls short when compared to the peer median growth rate of 14%. Additionally, average deposits decreased by approximately $1.1 billion to $64.6 billion year-to-date, indicating potential liquidity challenges that could hinder growth prospects.