UPDATE: Morgan Stanley Upgrades Regions Financial to Overweight on Valuation

Morgan Stanley raised its rating on Regions Financial

from Underperform to Overweight and increased its price target from $8 to $8.50. Morgan Stanley said, "Our $8.5 price target is 0.7x 2014e P/BV, 1.0x 2014e P/TBV and 10.0x 2014e P/E vs current valuation of 0.57x 2014e P/BV, 0.82x P/TBV and 8.2x P/E. Credit improvement, continued de-risking without sacrificing on loan growth critical to driving stock. … Housing/credit improvement; strong mortgage banking; higher capital return; and credit rating upgrades driving lower debt costs." Regions Financial closed at $7.05 on Tuesday.