Citi Raises Regions Financial Price Target to $30, Maintains Buy Rating

Citi raised the price target on Regions Financial (RF) to $30 from $27 and maintained a Buy rating. The bank reported a Q2 beat and increased guidance driven by net interest income. The analyst expects continued strength in net interest income and loan growth.

Regions Financial Corporation (RF) reported strong second-quarter (Q2) 2025 earnings, beating market expectations and leading to a price target raise by Citi. The bank's stock price target was increased to $30 from $27, with the analyst maintaining a Buy rating [3].

Financial Highlights

Regions Financial's Q2 2025 earnings came in at $534 million, with an adjusted earnings per share (EPS) of $0.59. The company achieved a 14% year-over-year increase in pre-tax, pre-provision income, reaching $832 million. Net interest income growth was up 5% in the quarter, while net interest margin remained in the low to mid-360s [3].

Loan Growth and Deposit Expansion

The bank's average deposits grew by 30% organically over the last five years, with a 1% increase in ending loans driven by commercial and industrial (C&I) and real estate. Regions Financial added over 300 new commercial relationships across its wholesale business year-to-date, indicating successful execution of strategic plans [3].

Net Interest Income and Margin

Regions Financial's net interest income grew by 5% in the quarter, while the net interest margin remained stable. The company's allowance for credit loss ratio declined by one basis point to 1.80%, indicating improved credit quality. The common equity tier 1 (CET1) ratio is estimated at 10.7%, demonstrating strong capital adequacy [3].

Guidance and Outlook

Regions Financial increased its guidance for the year, driven by continued strength in net interest income and loan growth. The bank's president and CEO, John Turner, stated that the company's culture is expected to drive long-term value for shareholders [3].

Price Target and Analyst Ratings

Citi's price target raise reflects the bank's successful transformation under CEO John Turner's leadership. The analyst expects continued strength in net interest income and loan growth, with the average target price for Regions Financial standing at $26.81 with a high estimate of $31.00 and a low estimate of $22.00 [3].

References

[1] Regions Financial Corporation. Financial Information - Quarterly Investor Info. Retrieved from https://ir.regions.com/financial-information/quarterly-investor-info/default.aspx
[2] Associated Banc-Corp. Earnings Per Share (EPS): $0.65 for Q2 2025. Retrieved from https://finance.yahoo.com/news/associated-banc-corp-asb-q2-072254278.html
[3] Regions Financial Corp. Stock News. Retrieved from https://www.gurufocus.com/news/2989783/regions-financial-rf-target-price-raised-by-rbc-capital-rf-stock-news