Morgan Stanley analyst Betsy Graseck has maintained their neutral stance on RF stock, giving a Hold rating on July 18.
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Betsy Graseck has given her Hold rating due to a combination of factors that reflect both positive and challenging aspects of Regions Financial’s current financial standing. The company has shown strong performance with a notable increase in its net interest margin (NIM) and net interest income (NII), which exceeded expectations. This positive momentum has led to an upward revision in earnings per share (EPS) estimates for 2025 and 2026, along with a higher price target.
However, despite these improvements, there are concerns that temper the overall outlook. The company faces headwinds in commercial and industrial (C&I) loan growth, partly due to the non-renewal of significant tech loans. Additionally, while the transition to a new cloud-based deposit system promises future benefits, it is not expected to be fully realized until 2027. These factors contribute to a balanced view, justifying the Hold rating as the stock trades at a reasonable valuation with modest upside potential.
In another report released on July 18, Piper Sandler also maintained a Hold rating on the stock with a $26.00 price target.