UPDATE: Credit Suisse Reiterates Outperform Rating, Lowers PT on Regions Financial Corporation
In a report published Wednesday, Credit Suisse reiterated its Outperform rating on Regions Financial Corporation (NYSE: RF), but slightly lowered its price target from $8.50 to $8.00.
Credit Suisse noted, “RF reported 3Q12 GAAP EPS of $0.22. After adjusting for $0.01 of net positive items (securities gains, tax rate, reserve for NSF refunds), we estimate operating EPS of $0.21. This was in-line with both our estimate and consensus. The key earnings drivers relative to our estimates were lower than expected NIM/NII, offset by a lower than expected provision. Reducing 4Q12-2015 EPS and target price: Reducing our 4Q12 / 2015 EPS estimates to $0.20 / $0.95 from $0.22 / $1.05. The key drivers of the revisions were slower loan growth and a lower NIM forecast. We are lowering our 2012/2013/2014 EPS estimates to $0.77/$0.75/$0.79 (from $0.78/$0.85/$0.95) respectively. Our target price declines to $8.00 (from $8.50) (8.5x '15 EPS).”
Regions Financial Corporation closed on Tuesday at $6.54.
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