The bank, whose assets total nearly $26 billion, reported its first quarterly profit in more than two years in mid-July but Wall Street is skeptical that it's out of the woods just yet.
Of the 27 analysts currently covering the stock, 18 have a hold rating. And while the median analysts' 12-month price target for the shares is $14, implying upside of more than 15% from current levels, the stock was sitting at a 52-week high of $15.86 as recently as mid-April.
The question is whether or not that pullback is emblematic of the broad weakness in the bank stocks due to financial reform and other well-documented headwinds since that time, or does it represent real skepticism about First Horizon's post-crisis prospects? The answer, as it so often is, seems to be a little bit of both.Management's stance, unsurprisingly, is that the bank is ready to rise up and meet the challenges of the new world of banking. CFO William 'BJ' Losch says the First Horizon's relatively new leadership team is far from exhausted coming out of the crisis; rather, they're just getting started. "We're certainly tired, but kind of energized about where we are for the future," Losch said in a recent interview with TheStreet. "We just returned to profitability this quarter
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