Evercore ISI reiterated a Buy rating on Regions Financial Corporation (NYSE: RF), and raised the price target to $10.00 (from $9.00), following the company's 2Q earnings report. Management indicated efficiencies tied to RF's $300M cost save program are on track, and also indicated that the 2Q increase in NPAs resulted from energy.

Analyst John Pancari commented, "RF reported 2Q16 EPS of $0.20. Ex items, we peg core at $0.21 vs our est of $0.19. Upside was from higher than expected NII / better NIM, lower LLP, and higher non-II, partly offset by higher expenses. Bottom line: RF's tempered outlook for commercial loan growth is notable (for peer read-thru's as well). However, despite this impact, our '17 EPS est remains unchanged owing to a higher NIM run rate."

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Shares of Regions Financial closed at $8.88 yesterday.