Morgan Stanley analyst Betsy Graseck maintained a Hold rating on Regions Financial (RF – Research Report) on April 17 and set a price target of $22.00.
Betsy Graseck’s rating is based on a combination of factors that reflect both positive and cautious elements in Regions Financial’s outlook. The company managed to exceed earnings expectations primarily due to lower expenses, which contributed to a 5% beat on consensus EPS. This positive performance led to an upward revision of the EPS forecast for 2025 and 2026, indicating confidence in the company’s ability to generate higher fee income and maintain reduced expenses.
However, there are some concerns that temper the overall outlook. The guidance for net interest income (NII) and adjusted fee income has been revised downward, suggesting potential challenges in revenue growth. Additionally, while the credit quality remains stable, with no significant deterioration observed, the modest loan growth and adjustments in financial guidance contribute to a cautious stance. As a result, Betsy Graseck has opted for a Hold rating, reflecting a balanced view of the company’s prospects.
Graseck covers the Financial sector, focusing on stocks such as State Street, Wells Fargo, and Citigroup. According to TipRanks, Graseck has an average return of 2.8% and a 46.47% success rate on recommended stocks.