Regions Financial (RF) PT Raised to $23 at Truist Securities

Truist Securities analyst Brandon King raised the price target on Regions Financial (NYSE: RF) to $23.00 (from $21.00) while maintaining a Hold rating.

The analyst commented: "We revise our 2024/2025 Core EPS forecast to $1.96/$2.05 from $1.87/$2.12, primarily driven by slightly higher NII and lower provisioning in 2024, offset by higher expenses in 2025. The NII trajectory remains relatively intact, despite the softer loan growth outlook, and our rising cumulative interest bearing deposit beta forecast lowers slightly to 44% by 4Q24; in-line with management expectations. We continue to believe that NII should sequentially increase in 2H24 and then after 1Q25 once Fed rate cuts begin, driven by fixed asset repricing and less negative carry on swaps. That said, we are assuming a more conservative cumulative IB deposit beta on the downside of 31% compared to management's expectations of mid-30s. We believe the stock is close to fairly valued trading in-line with the KRE index (P/E basis). We raise our PT to $23 (11x 2025E EPS) from $21."

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