Regions Financial added to Best List Ideas at Wedbush

Wedbush analyst David Chiaverini raised the firm’s price target on Regions Financial to $23 from $22 and keeps an Outperform rating on the shares. The firm also added the name to its Best Ideas List. Regions Financial’s deposit base is 75% insured or collateralized, which is the highest among regional bank peers. Regions’ strong deposit franchise is supported by the stickiness of its rural deposit base. Furthermore, Wedbush likes that Regions Financial has locked-in a net interest margin of 3.60%-4.00% in coming years through the use of hedging even if market interest rates were to decline by toward 1%. The firm expects deposits to be under pressure in the first half of 2023, in-line with guidance calling for a decline of $3-$5 billion, but it expects core deposits to exhibit relative stability thereafter.