Barclays Maintains an 'Underweight' on Regions Financial (RF); 3Q11 EPS Preview: Cautious Tone Lingers
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Price: $30.41 +0.63%
Rating Summary:
12 Buy, 23 Hold, 4 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 8 | Down: 6 | New: 26
Rating Summary:
12 Buy, 23 Hold, 4 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 8 | Down: 6 | New: 26
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Barclays maintains an 'Underweight' on Regions Financial (NYSE: RF) price target of $8.00.
Barclays analyst says, "Results: We expect RF to report 3Q11 EPS of $0.03 versus consensus of $0.05. Still, the past few quarters, RF has managed to eke out better than expected results, aided by one-time gains. While we look for continued asset quality improvement following the 24% decrease in inflows to nonaccrual loans in the prior quarter, we suspect its improvement to continue to lag peers."
"At our recent investor conference, RF appeared to sound incrementally more cautious, particularly around asset quality. We continue to remain concerned with its Investor Real Estate loan portfolio ($13.4bn, or 17% of total loans) where NPLs remain at 9%. We expect this book, albeit shrinking, to weigh on provisions and profitability for the time being. Uncertainty around TARP, government/board investigations, and the ultimate impact of its Morgan Keegan strategic review also remains."
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 $3.66 yesterday.
Barclays analyst says, "Results: We expect RF to report 3Q11 EPS of $0.03 versus consensus of $0.05. Still, the past few quarters, RF has managed to eke out better than expected results, aided by one-time gains. While we look for continued asset quality improvement following the 24% decrease in inflows to nonaccrual loans in the prior quarter, we suspect its improvement to continue to lag peers."
"At our recent investor conference, RF appeared to sound incrementally more cautious, particularly around asset quality. We continue to remain concerned with its Investor Real Estate loan portfolio ($13.4bn, or 17% of total loans) where NPLs remain at 9%. We expect this book, albeit shrinking, to weigh on provisions and profitability for the time being. Uncertainty around TARP, government/board investigations, and the ultimate impact of its Morgan Keegan strategic review also remains."
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 $3.66 yesterday.
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