Analyst Betsy Graseck of Morgan Stanley maintained a Hold rating on Regions Financial, retaining the price target of $32.00.
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Betsy Graseck’s rating is based on a combination of factors that reflect both current challenges and future opportunities for Regions Financial. The company’s net interest margin (NIM) experienced a decline as anticipated, but a rebound is expected in the fourth quarter as rate cuts are projected to lower deposit costs. This temporary setback is balanced by the company’s capital levels, which are at target, allowing for increased buybacks despite muted loan growth.
Betsy Graseck has also adjusted the earnings per share (EPS) estimates for the upcoming years, reflecting higher fees that are partially offset by lower net interest income (NII). The price target remains unchanged, applying an 11x price-to-earnings multiple to the 2027 EPS. While credit conditions are improving, with stable non-performing loans and a decrease in criticized loans, the overall outlook suggests modest upside potential, justifying the Hold rating.
According to TipRanks, Graseck is a 4-star analyst with an average return of 5.2% and a 51.90% success rate. Graseck covers the Financial sector, focusing on stocks such as JPMorgan Chase, PNC Financial, and Goldman Sachs Group.