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Investing.com - DA Davidson has reiterated its Buy rating on Regions Financial (NYSE:RF) with a price target of $29.00, as the stock trades near its 52-week high of $27.96.
The investment firm has added Regions Financial to its Best-of-Breed Bison product, which focuses on long-term best-in-class companies. According to DA Davidson, RF meets 10 of the 12 criteria required to qualify for this designation.
The firm notes that Regions Financial is currently trading at a significant discount to its calculated intrinsic value of $35, based on a discounted tangible book model. Trading at a P/E ratio of 11.27x, InvestingPro analysis also suggests the stock is undervalued, with additional insights available in the comprehensive Pro Research Report.
DA Davidson highlighted several key strengths that distinguish Regions Financial from its peers, including its sustainable competitive moat and favorable market dynamics within its Southern franchise. The bank’s strong financial position is reflected in its "GOOD" overall health score from InvestingPro, supported by a 12-year streak of consecutive dividend increases.
The investment firm also pointed to Regions Financial’s peer-leading profitability, noting that the bank has maintained superior return on tangible common equity (ROTCE) for four consecutive years, with current return on equity standing at 12%.
In other recent news, Regions Financial reported robust earnings for the second quarter of 2024, with earnings per share (EPS) of $0.60, surpassing analyst forecasts of $0.56. The company’s revenue also exceeded expectations, reaching $1.91 billion compared to the projected $1.86 billion. Following these strong results, several analyst firms have adjusted their outlooks on Regions Financial. Stephens raised its price target to $29.00 from $24.00, maintaining an Overweight rating, citing the bank’s impressive second-quarter performance. DA Davidson also increased its price target to $29.00 from $25.00, highlighting the improved outlook and increased revenue forecast by the company. Truist Securities adjusted its price target to $27.00 from $23.00, while maintaining a Hold rating, based on future earnings projections. These developments reflect a positive sentiment among analysts regarding Regions Financial’s recent performance and future prospects.
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