UPDATE: Nomura Equity Research Initiates Coverage on Regions Financial Corporation with Buy Rating, $9 PT

In a report published Wednesday, Nomura Equity Research initiated coverage on Regions Financial Corporation

with a Buy rating and $9.00 price target. Nomura Equity Research noted, “Initiate with a Buy rating. We think the shares will get a lift this year from continued credit improvement (we are lower than consensus on provision expense), higher-than-expected capital returns (we see a buyback along with a dividend increase), expense control, and a possible turn to positive loan growth in the second half of 2013. Shares currently trade at a discount to the regional bank group on both a P/E and P/B basis, and we think the current multiples of 9.4x 2014E earnings and 0.7x book value are not demanding. We believe shares could re-rate in 2013.” Regions Financial Corporation closed on Tuesday at $7.81.