Piper Jaffray Raises Price Target on Regions Financial (RF) Following 3Q

October 19, 2016 9:25 AM EDT
Get Alerts RF Hot Sheet
Price: $14.68 --0%

Rating Summary:
    13 Buy, 20 Hold, 2 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 0 | Down: 0 | New: 0
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Piper Jaffray reiterated an Overweight rating on Regions Financial (NYSE: RF), and raised the price target to $11.50 (from $11.00), following the company's 3Q earnings report.

Analyst Kevin Barker commented, "We reiterate our Overweight rating and adjust our price target to $11.50 from $11 following 3Q16 earnings. We are increasing our target to take into account an increase in EPS estimates as the company remains in cost cutting mode while showing incremental progress in growing fee revenue. Our FY17E EPS increases to $0.93 from $0.90 and FY18E EPS to $0.99 from $0.96 primarily due to higher fee income and lower credit costs. Despite our expectation for lackluster growth, we still expect RF to show decent EPS growth as it buys back 4-5% of shares outstanding each year, expenses remain in check and the company shows some incremental growth in fee income through its various growth initiatives or tuck-in acquisitions. The company is also likely to benefit from incrementally lower expenses and higher capital return around CCAR."

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 $10.25 yesterday.

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