First Horizon Analysis: Analysts Show Mixed Sentiment

First Horizon (NYSE:FHN) is under scrutiny as 11 analysts deliver varied evaluations. While some show bullish tendencies, the overall sentiment indicates a cautious outlook, highlighting challenges in revenue and profitability.

Date: 01-03-2025

AI Rating: 5

Market Performance & Analyst Ratings: In the last three months, First Horizon has garnered mixed reviews from analysts, with three bullish ratings, three somewhat bullish, and five classified as indifferent. The last 30 days showed a shift, as there was only one bullish rating. This shift may affect investor confidence and stock price movements.

Price Targets: Analysts forecast an average price target of $23.64, an increase from the previous average of $22.09, signaling a slight positive shift in analysts’ expectations. However, the projected price targets, ranging from a low of $21.00 to a high of $25.00, suggest potential volatility.

Revenue Growth: The analysis clearly states that First Horizon's revenue growth has faced challenges, reporting a decline of approximately -8.98% over the past three months. Such a downturn in revenue is a red flag for investors as it implies difficulties in the company's capacity to generate top-line earnings.

Net Margin: The net margin at 21.64% is below industry standards, indicating that First Horizon may face significant challenges in achieving robust profitability. This could undermine investor confidence in the firm's ability to control costs effectively.

Return on Equity (ROE): With an ROE of 1.86%, First Horizon's performance lags behind its industry peers. This low ROE may deter investors looking for companies that demonstrate strong returns on capital, signaling potential underlying operational inefficiencies.

Debt Management: Favorably, the company presents a low debt-to-equity ratio of 0.27. This healthier balance sheet suggests that First Horizon is managing its debt responsibly, which could be perceived positively by investors seeking stability.

In summary, while analyst ratings show some optimism through raised price targets and a few bullish sentiments, ongoing revenue challenges, low profitability margins, and subpar returns on equity present significant concerns for potential investors in First Horizon.

Stocks: FHN