Regions Financial upgraded to Buy from Neutral at Citi

Citi analyst Keith Horowitz upgraded Regions Financial to Buy from Neutral with a price target of $23, up from $20. Regions is currently earning top quartile returns, but the market is discounting these returns in part due to concerns on credit risk given performance last cycle and possibly impact on fees from regulatory reform, the analyst tells investors in a research note. The firm believes the bank’s business model is well positioned to continue to deliver strong returns combined with strong proforma capital ratios, which “gives investors opportunity to buy a high-quality franchise at a discount.”