J. Michael Jones/iStock Editorial via Getty Images
First Horizon Corp. (NYSE:FHN) stock advanced 3.3% in Friday morning trading after Raymond James upgraded the regional bank to Strong Buy from Outperform on a better-than-expected initial 2024 outlook given at a recent investor conference.
The lender’s presentation prompted RayJay to view the stock’s risk-reward more positively. The firm laid out several favorable developments, including “solid capital levels, improving NIM/NII trajectory, and outlook for positive operating leverage juxtaposed with its discounted valuation vs peers.”
What’s more, the potential slide in interest rates is expected to benefit FHN’s “mortgage warehouse and fixed income businesses more than current consensus implies,” RayJay wrote in a note.
The firm’s Strong Buy rating disagrees with the SA Quant system rating of Hold and aligns with the average sell-side analyst rating of Buy.
Source link
