-- CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:
After digesting Q1 2026 earnings, we increase our 12-month target by $1 to $37, 12.5x our 2027 EPS estimate, a premium to RF's five-year forward P/E average of 9.7x, given an improving regulatory environment and exciting growth prospects. We raise our 2026 EPS estimate by $0.02 to $2.67 and increase 2027's by $0.07 to $2.95. We were a bit disappointed by Q1 results, as both net interest income and noninterest income contracted. However, RF is a well-run bank that successfully reduced costs, delivering positive operating leverage despite the weakness. Credit quality showed encouraging signs, and the bank's ROTCE of 18.3% remains superior to peers, many of whom do not expect to reach this level for at least three years. Significant upside remains. RF's CET1 ratio of 10.7% is conservative, in our view, coming in well above pre-pandemic levels. With proposed Basel III changes expected to reduce risk-weighted assets by 10%, RF is well positioned to return capital to shareholders at an accelerated rate.