Regions Financial's (RF) fundamentals remain robust with Q1 earnings growth validating that the company is delivering on its growth roadmap, RBC Capital Markets said in a Friday research report.
The company's return on tangible common equity growth momentum is likely to continue into 2026 and 2027, with the brokerage reiterating its EPS guidance of $2.60 and $2.85, respectively.
Regions' active interest-rate risk management program is contributing to its profitability, and the company remains well-capitalized with a common equity tier 1 ratio of 10.7%, analysts wrote.
Balance sheet strength during the quarter was driven by loan growth, led by utilities, manufacturing, and health care, while robust cost management drove improvement across most expense categories, according to the note.
The brokerage reiterated its outperform rating on the stock and boosted its price target to $31 per share from $29.
Price: $28.31, Change: $+0.18, Percent Change: +0.62%