In a report released today, Keith Horowitz from Citi maintained a Buy rating on Regions Financial (RF – Research Report), with a price target of $28.00.
Keith Horowitz has given his Buy rating due to a combination of factors including a positive forecast for Regions Financial’s net interest income and operating leverage. Despite a slight reduction in the outlook for loan growth in the first half of 2025, the bank is expected to achieve a net interest income growth of 3% year-over-year, aligning with management’s guidance. Additionally, the anticipated net interest margin exit rate of approximately 3.6% and the bank’s strong capital position suggest potential outperformance in buybacks, estimated at around $150 million per quarter in 2025.
Horowitz also notes that the stock’s recent pullback presents an opportunity, as the bank’s return on tangible common equity remains competitive among top quartile banks, even with a slightly lowered target price of $28. While the 2026 earnings estimates have been adjusted downward due to revised loan growth expectations, the earnings per share for 2025 remain unchanged, and the expected share price return is projected at 33.4%, reinforcing the Buy rating.
Based on the recent corporate insider activity of 26 insiders, corporate insider sentiment is neutral on the stock.
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