DA Davidson raises Regions Financial stock price target to $29 on improved outlook

Published 21/07/2025, 11:28
DA Davidson raises Regions Financial stock price target to $29 on improved outlook

Investing.com - DA Davidson raised its price target on Regions Financial (NYSE:RF) to $29.00 from $25.00 on Monday, while maintaining a Buy rating on the stock. The bank, currently valued at $23.38 billion, trades at an attractive P/E ratio of 11.45 and offers a 4.08% dividend yield. According to InvestingPro analysis, the stock appears slightly undervalued based on its Fair Value model.

The firm cited Regions Financial’s solid second-quarter results and improved sentiment, which led management to raise its revenue forecast. The company now expects to deliver 150 to 250 basis points of pre-provision operating leverage, up from its previous guidance of 50 to 150 basis points. This optimistic outlook is supported by eight analysts revising their earnings estimates upward, with the stock already delivering a strong year-to-date return of 13.08%.

DA Davidson highlighted several positive factors in Regions’ quarterly performance, including peer-leading return on tangible common equity at 18.6% and better-than-expected net interest margin expansion.

The firm also noted that credit metrics for Regions Financial are trending positively, and loans have hit an inflection point that positions the bank for stronger loan growth in 2026.

DA Davidson’s analysis indicates the bank is forecasting approximately 180 basis points of pre-provision operating leverage, falling within management’s updated guidance range.

In other recent news, Regions Financial Corporation reported strong earnings for the second quarter of 2024, surpassing analyst expectations with an earnings per share of $0.60, compared to the forecasted $0.56. The company also exceeded revenue projections, reporting $1.91 billion against an anticipated $1.86 billion. This positive performance was supported by a 5% quarter-over-quarter increase in net interest income and a 14% year-over-year rise in pretax pre-provision income. Analysts have noted the company’s focus on technological upgrades and expanding commercial relationships as contributing factors to its robust financial results. Regions Financial has expressed its expectations for stable to modestly increasing loan growth for the full year 2025. Additionally, the company plans to continue hiring commercial bankers and modernizing its technology platforms. Despite economic uncertainties, the company maintains its commitment to delivering positive operating leverage over time. The firm’s strategic focus remains on maintaining a strong non-interest-bearing deposit mix and expanding its client base in priority markets.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.