UPDATE: J.P. Morgan Reiterates Neutral Rating, Raises PT on Regions Financial
In a report published Friday, J.P. Morgan & Co. reiterated its Neutral rating on Regions Financial (NYSE: RF), and slightly raised its price target from $8.00 to $8.50.
J.P. Morgan noted, “Regions earnings should be driven primarily by large loan loss reserve releases, along with some further improvement in net interest margin and reduction in credit related expenses as housing market recovers. We rate Regions Neutral relative to our coverage, which is fair, in our view, due to lower level of normalized profitability. Basel 3 NPR will reduce excess capital and temper potential for capital return. Longer term, Regions needs to determine ways to improve normalized profitability.”
Regions Financial closed on Thursday at $7.28.
(c) 2013 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Tags: J.P. Morgan & Co.