Nomura Securities Maintains a 'Buy' on Regions Financial (RF); Digging Out of the Credit Hole

Nomura Securities maintains a 'Buy' on Regions Financial (NYSE: RF), PT $8.

Nomura analyst, Brain Foran, said, "We think Regions is continuing to dig out of the credit hole with inflows to nonperforming slowing over 20% in the quarter leading to a break-even result. While some may worry about a big decline in provision vs. only a small decline in the stock of nonperformers, we would note that the provision to NPA inflow ratio has remained fairly stable for RF at ~60% in recent quarters...The stock trades at 9x our base case normalized earnings which factors in a 3.30% NIM, and 7x our bull case normalized which factors in a 3.50% NIM. Thus we find valuation attractive..."

For more ratings news on Regions Financial click here and for the rating history of Regions Financial click here.

Shares of Regions Financial closed at $6.98 yesterday.

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