Wunderlich Securities Sees 3Q14 EPS Ahead Of Consensus For Regions Financial Corp.

In a report published Wednesday, Wunderlich Securities analyst Kevin Reynolds reiterated a Buy rating and $13.00 price target on Regions Financial Corp. (NYSE: RF).

In the report, Wunderlich Securities noted, “We maintain our Buy rating on shares of Regions Financial Corporation (RF) as well as our $13 price target at this time. Regions' 3Q14 EPS from continuing operations was ahead of expectations despite slowing loan growth and modest NIM compression, while provision expense was below consensus reflecting further improvements in asset quality, which accounted for the penny upside in 3Q14. It appears that loan growth strengthened in September and the trend continues in 4Q, which should support the NIM near current levels while providing additional operating leverage over the next 12 to 18 months. With RF shares trading at a meaningful discount to peers, we believe current levels offer an attractive opportunity for investors to add exposure to regional banks with a focus on the Southeastern U.S.”

Regions Financial Corp. closed on Tuesday at $9.16.