With some turbulence in the core business, rising
competitive challenges in its core markets and a comparatively large
short interest, First Horizon (FHN)
is a more controversial stock than you might initially assume.
Management has laid out its case for leveraging its specialty lending
franchise to gain share in key growth markets like the Carolinas and
Florida while also driving higher efficiency through its “bonefish”
restructuring efforts. But the fact remains that spreads are still
challenging and competition is still rising.
I
believe that sentiment skews negative on First Horizon and that if the
company can stabilize and improve, there could be decent rewards here
for shareholders. The guide-down for NIM and ROTCE don’t help the case,
but a long-term core earnings growth rate around 4% can still support
fair value close to $18.
Continue here:
No comments:
Post a Comment