UPDATE: Keefe, Bruyette & Woods Assumes Regions Financial (RF) at Underperform

July 6, 2021 4:24 PM EDT
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Price: $21.76 +5.38%

Rating Summary:
    13 Buy, 20 Hold, 2 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 4 | Down: 3 | New: 5
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(Updated - July 7, 2021 12:46 AM EDT)

Keefe, Bruyette & Woods analyst David Konrad assumes coverage on Regions Financial (NYSE: RF) with a Underperform rating and a price target of $18.00.

The analyst comments "Regions has done an impressive job in terms of de-risking its loan book and improving returns through strong expense control and running off non-core loan products. However, we are assuming coverage with an Underperform rating due to challenges generating organic growth, near-term reliance on derivative benefits and outsized exposure to industry service charge/overdraft pressures. As a result, we do not expect a meaningful earnings lift to higher short-term rates compared to peers. Given the effective pull-forward of higher rates from derivatives, benefits of a more open economy in its footprint and headwinds from service charges (our 2023 service charge estimate is 17% below 2019 results), we expect will move from a 16% discounted valuation in 2021 to a 6% premium on 2023 estimates."

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 $20.26 yesterday.

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