Regions Financial upgraded to Outperform from Market Perform at Keefe Bruyette

Keefe Bruyette analyst David Konrad upgraded Regions Financial (RF) to Outperform from Market Perform with a price target of $28, up from $27. The shares are trading at a 6% discount to peers on 2026 estimates despite return on tangible common equity expectations north of 18% versus peers at 15.4%, the analyst tells investors in a research note. The firm says near-term catalysts represent an inflection in net interest income in Q3 and expectations for solid NIM expansion in the second half of 2024 and 2026 owing to declining deposit costs and reduced headwinds from received-fixed swaps on the commercial loan portfolio.