Wells Fargo upgrades First Horizon with 60% upside to deal price

Wells Fargo upgraded First Horizon National (FHN) to Overweight from Equal Weight with an unchanged price target of $25. The pending takeover by TD Bank (TD) is still on track, creating an attractive opportunity in First Horizon at current share levels, the analyst tells investors in a research note. The firm says the TD merger being completed at the original $25 per share price is compelling at First Horizon’s current valuation. It believes downside risk is limited to $15 per share, while original deal completion provides 60% upside. The renegotiated end date of May 27 still allows for the deal to close if final regulatory approval is received before then, contends Wells. It believes both sides are still working toward a close.