UPDATE: ISI Group Initiates Coverage on Regions Financial Corporation with Buy Rating, $11 PT on Multiple Positive Factors

In a report published Tuesday, ISI Group analyst Keith Murray initiated coverage on

with a Buy rating and $11.00 price target. In the report, ISI Group noted, “We are initiating coverage of Regions Financial with a Buy rating and 12-month price target of $11. We think RF offers investors several ways to win in spite of the sluggish macro backdrop. RF continues to have leverage to improving credit (we see reserve releases continuing through 2014), is controlling expenses, growing loans again, and is poised to increase capital returns (dividend yield increase should increase interest from income funds). In addition, its NIM will likely be more stable than some peers (help from the long end of the curve on amortization and a little room left on liability costs) and it is also asset sensitive, ranking third among the regional banks we cover. With shares trading at less than 10x our 2015E EPS we see attractive upside over the next 12 months.” Regions Financial Corporation closed on Monday at $9.27.