Regions Financial downgraded to Hold at Argus on valuation, rate cut delays

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.