Ahead of the Bell: Analyst upgrades First Horizon
NEW YORK—An analyst upgraded First Horizon National Corp. late Monday after the regional bank said it would raise $600 million in a stock offering to help boost capital levels.
Punk, Ziegel & Co. analyst Richard Bove raised his rating to "Buy" from "Market Perform," and said the stock will likely trade at a premium to its $14.42 per share tangible book value.
He kept a $15 price target, implying he expects the stock to rise about 37 percent over Monday's $10.99 close.
"I am not recommending this stock expecting a surge in business activity," Bove said in a note to clients. "I want to own it because the price is simply too cheap relative to book (value)."
Bove raised his 2008 earnings estimate to 53 cents per share from 37 cents per share.
Analysts polled by Thomson Financial expect, on average, earnings of 49 cents per share for the year.
Shares fell 33 cents, or 3 percent, to $10.66 in premarket trading Tuesday.
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