Jefferies Downgrades Regions Financial (RF) to Hold
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Jefferies downgraded Regions Financial (NYSE: RF) from Buy to Hold with a price target of $14.00 (from $11.50) to reflect post-election stock/EPS dynamics.
Analyst Ken Usdin commented, "We downgrade RF to Hold after a very strong post-election performance, with shares up 21% since the 11/8 close. We see an above-average EPS pickup in our Bull scenario (+25% over our current '18 est.), however, RF’s Bull ROTCE should remain below peer averages. RF trades at 10.5x our Bull scenario (vs. 11x for peers). On a relative basis, shares trade at 84% of the current '17 S&P 500 P/E multiple vs. its 75% percentile historical valuation of 83% (since 2001). Our $14 price target, which is based on a probability-weighted scenario analysis, implies shares trade at 14.5x our current '18 EPS estimate of $1.01. Upside risks to our downgrade: faster progress on cost saves, a quicker rebound in loan growth."
Shares of Regions Financial closed at $13.36 yesterday.
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Create E-mail Alert Related CategoriesAnalyst Comments, Analyst PT Change, Downgrades
Related EntitiesJefferies & Co, Standard & Poor's
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