Regions Financial upgraded to Buy from Hold at Jefferies

Jefferies analyst Ken Usdin upgraded Regions Financial to Buy from Hold with a price target of $22, up from $15. Bank price-to-earnings ratios remain below historical averages, with potential for more expansion in a “benign soft landing, plus help from growing book values and capital ratios,” the analyst tells investors in a research note. The firm expects net interest income to stabilize during 2024 and expand modestly in 2025. While Regions reset expectations in its October guide and has clarified messaging further since, the shares still trade at a P/E discount to peers, contends Jefferies.