Regions Financial downgraded to Equal Weight from Overweight at Stephens

Stephens downgraded Regions Financial (RF) to Equal Weight from Overweight with a price target of $27, down from $30. Conversations with investors in recent weeks have been heavily weighted towards M&A and until the current bank M&A window closes, especially among larger institutions, those with strong currencies and a perceived buyer status may offer less upside. Regions is seen as a buyer and the valuation endorses this view, but the perception of both being an acquirer and, to a lesser extent, the risk from emerging competition on Regions’ low-cost deposit base in specific Southeast markets prompts the firm’s downgrade, the analyst tells investors.