UPDATE: Deutsche Bank Downgrades Regions Financial to Hold on Rate Decline and Share Outperformance

Deutsche Bank reduces its rating on Regions Financial

from Buy to Hold and reduces its price target from $7.50 to $6.50. Deutsche Bank notes, "RF has made meaningful progress on a number of fronts over the past year (credit improvement, sale of Morgan Keegan, TARP repayment, etc.)—driving the stock up 37% YTD (vs. +9% for the group) and more than double the 4Q11 low. While we see potential further upside longer term (from loan growth, expense mgmt, higher NIM), near-term upside is likely to prove challenging given the sharp drop in interest rates of late (5- and 10-year Treasury rates are -42bps and -75bps QTD, respectively) and a potentially weaker macro growth environment—both of which will make revenue growth more difficult." RF closed at $5.88 on Friday.