UPDATE: Deutsche Bank Downgrades Regions Financial to Hold on Rate Decline and Share Outperformance
Deutsche Bank reduces its rating on Regions Financial (NYSE: RF) 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.
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