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Deutsche Bank maintains a 'Buy' on Regions Financial (RF); Remains Our Top Regional Pick Following CFO Dinner

November 16, 2011 11:31 AM EST Send to a Friend
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Price: $10.16 -0.97%

Rating Summary:
    18 Buy, 10 Hold, 0 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 14 | Down: 13 | New: 28
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Deutsche Bank maintains a 'Buy' on Regions Financial (NYSE: RF) price target of $5.00.

Deutsche analyst says, "Takeaways from Dinner: 1) Following a mixed 3Q, credit expected to improve from here. Some of this likely reflects a smaller land book—at just $2.1b (or 2-3% of loans, but accounting for ~20% of NPA inflows); 2) Capital continues to improve and recovery of deferred tax asset (worth 50bps) seems likely over the next couple of years; 3) Mgmt reiterated optimism in completing its strategic review of Morgan Keegan in the near term; 4) TARP repayment strategy unchanged (mgmt is sensitive to dilution and will be patient). We’ve assumed a related issuance of $1.2b or ~35% of TARP but our bias is it will be less given Tier 1 common is likely to exceed 9% organically by year-end 2012. 5) Net interest margin to be stable through 2012; 6) Expense mgmt remains a focus (we estimate a 3-5% reduction in core expenses in 2012 vs. 3Q)."

For an analyst ratings summary and ratings history on Regions Financial click here. For more ratings news on Regions Financial click here.

Shares of Regions Financial closed at $4.04 yesterday.




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