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Argus analyst Kevin Heal downgraded Regions Financial Corp. (NYSE:RF) stock to Hold from Buy in a recent note on the view that the regional banking stock now is fully valued.
RF is changing hands at 10 times Heal’s revised 2024 EPS estimate, just surpassing the peer average.
Still, as it relates to industry-wide concerns over deposit pressures, losses in investment portfolios and office exposure concerns, Heals noted that RF “has taken the appropriate steps to allay these fears,” he wrote in a Monday note.
The downgrade comes after the lender turned in last week better-than-expected Q4 earnings as higher noninterest income and lower expenses, compared with Q3 2023, helped to offset declining interest income.
The analyst’s Hold rating agrees with the SA Quant system rating and the average Wall Street analyst rating, both at Hold.
RF ticked up 0.1% in Tuesday morning trading.