Analysts have recently adjusted their price targets for First Horizon Corporation (NYSE:FHN) as the regional bank shows signs of improved fundamentals. On December 18, 2025, Truist Securities maintained a Hold rating while increasing the price target to $26 from $24. This adjustment reflects an optimistic outlook based on enhanced management commentary and the bank’s performance indicators.
In a similar vein, Keefe, Bruyette & Woods (KBW) reaffirmed a Market Perform rating on December 17, 2025, raising its target to $24 from $23. This reflects steady execution within the company. Just a day earlier, J.P. Morgan reiterated a Neutral/Hold rating, boosting its price target to $27 from $23, citing resilience in the bank’s earnings power. Additionally, Deutsche Bank initiated coverage with a Buy rating and set a target of $28, emphasizing the bank’s attractive valuation and operational execution.
Positive Market Response to Capital Initiatives
Operationally, First Horizon’s stock reached a one-year high in mid-December 2025, buoyed by these analyst upgrades and favorable reactions to the bank’s capital return strategies. A significant part of this strategy includes the board’s approval of a $1.2 billion stock repurchase program, which represents approximately 11.3% of outstanding shares. This move signals strong confidence in the company’s financial health and market valuation.
The bank has also announced a quarterly dividend of $0.15, payable in early January 2026. This dividend supports an appealing yield for investors focused on income generation, further enhancing the attractiveness of First Horizon as a potential investment.
Company Background and Market Position
First Horizon Corporation, based in Memphis, Tennessee, is a U.S. regional bank holding company established in 1864. Through its banking subsidiary, First Horizon Bank, the company provides a range of services including commercial, consumer, and specialty banking, as well as wealth management across 12 Southern states. This broad service offering enables First Horizon to cater effectively to both individual and institutional clients.
While analysts express a mix of caution and optimism regarding First Horizon’s prospects, some investors may find greater promise in other sectors, particularly in AI-related stocks, which are noted for their potential high returns.
As the financial landscape continues to evolve, First Horizon Corporation’s strategic decisions and market performance will be closely monitored by investors and analysts alike.