Seeking Alpha: Reality Has (Slowly) Caught Up With First Horizon Shares

I liked First Horizon (NYSE:FHN) about three and a half years ago and again a year ago, and though the stock has lagged Regions Financial (NYSE:RF) and SunTrust (NYSE:STI) since October of 2011, it has been a relative outperformer over the last year. First Horizon continues to make credible progress on running off its non-strategic loan book and reducing operating expenses while also slowly moving back to a growth footing.

The odds may still favor First Horizon becoming an acquisition target in a few years, but in the here and now, the company still has significant scope to improve its efficiency ratio and perhaps take advantage of higher rates. I think First Horizon is more or less fairly valued now, but I still see opportunities for the bank to outperform and start earning a bigger benefit of the doubt in analyst models.

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Reality Has (Slowly) Caught Up With First Horizon Shares