First Horizon upgraded to Outperform from Sector Perform at RBC Capital

RBC Capital upgraded First Horizon to Outperform from Sector Perform with a price target of $18, up from $16. The firm is gaining confidence in the company’s longer-term strategy and is encouraged by the “favorable near-to-medium term fundamental outlook,” supported by solid balance sheet growth, positive revenue trajectory, reasonable expense trends, and a manageable credit outlook. It also sees increased potential for more aggressive capital return this year, with a large buyback authorization recently announced. Combined, this supports improving core returns over time that can support multiple expansion for First Horizon, the analyst tells investors in a research note.