As previously reported, Argus downgraded Regions Financial to Hold from Buy following the company’s Q4 results that showed in-line earnings and net interest margin decline of 13bps. The stock now trades at 10-times expected 2024 EPS, which is just above the current average for regional bank peers but also looks “”fully valued”, the analyst tells investors in a research note. Many regional bank stocks have run up recently on the expectation that interest rates would be cut in early 2024, which would lower deposit costs and improve losses in the investment portfolio, but the recent economic data now suggests that the Fed may wait longer to make rate cuts, the firm added.
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- Regions Financial (NYSE:RF) Delivers Resilient Q4 Performance
- Regions Financial sees FY24 NII $4.7B-$4.8B, adjusted NII $2.3B-$2.4B
- Regions Financial reports Q4 net interest margin 3.60% vs. 3.99% last year