Keefe Bruyette downgrades First Horizon with thesis played out

Keefe Bruyette downgraded First Horizon to Market Perform from Outperform with an unchanged price target of $18. The firm says the catalysts behind its Outperform thesis, namely higher for longer interest rates, buybacks, and improved acquisition sentiment have played out. The market has appropriately rewarded First Horizon shares for these efforts, the analyst tells investors in a research note. Keefe says that while a takeover could happen, it can’t anchor its thesis entirely to this possibility. As such, the firm downgrades the shares on valuation.