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Investing.com - Truist Securities raised its price target on Regions Financial (NYSE:RF) to $27.00 from $23.00 on Monday, while maintaining a Hold rating on the stock. The bank, currently trading at $26.07 with a market capitalization of $23.4 billion, has seen its stock surge over 13% year-to-date.
The price target increase represents a 17.4% boost from the firm’s previous valuation and is based on approximately 10.5 times next-twelve-months price-to-earnings multiple on 2026 estimated earnings per share.
Truist Securities raised its 2025 earnings per share estimate by 2% to $2.30 and its 2026 estimate by 4% to $2.55, citing a better-than-expected net interest income trajectory and slightly improved fee income outlook.
These positive factors were partially offset by higher anticipated expenses related to technology investments and hiring, slightly more reserve builds from growth, and reduced share buybacks, which Truist now estimates at approximately $160 million per quarter.
The firm also revised its loan and deposit growth outlook higher based on second-quarter momentum and the current pipeline.
In other recent news, Regions Financial Corporation reported robust second-quarter earnings for 2024, exceeding analyst expectations with an earnings per share (EPS) of $0.60, compared to the forecasted $0.56. The company also surpassed revenue projections, reporting $1.91 billion against the anticipated $1.86 billion. Stephens and DA Davidson both raised their price targets for Regions Financial to $29, citing the strong quarterly results and improved outlook. The bank’s net interest income increased by 5% quarter-over-quarter, with a notable expansion in net interest margin. Regions Financial’s management has projected a 3-5% growth in net interest income for 2025, with expectations for stable to modest loan growth. Analysts from Stephens highlighted Regions Financial’s peer-leading return on tangible common equity, projecting it to be approximately 18% in 2025. DA Davidson noted positive trends in credit metrics and strong loan growth potential for 2026. The bank continues to focus on technological upgrades and expanding its commercial relationships, positioning itself for future growth.
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