Denver, CO, 06/10/2014 (Stocksntrade) – Regions Financial Corporation (NYSE:RF) following its run-in with banking regulators for loans that small-sized financial lenders such as it have offered in the mortgage sector, it appears has seen light at the end of the tunnel.
Analysts like Stephens have now offered new coverage of the financial service provider.
The coverage this analyst extends includes an overweight rating as well as a price target revision of $12.50 per share. In comparison to June 9, trading close of $10.85, the stock is all set to spike as per-markets indicate nearly 1% hike.
Small Bankers Under Scanner
Regions Financial Corporation (NYSE:RF) and other smaller banks have recently been under the scanner for the nature of their operations as well as their mortgage activities. The other banks included Fifth Third Bancorp (FITB), Sun Trust (STI) as well as Capital One (COF) and US Bancorp (USB).
Following the long tail settlement with major banks in the mortgage sector, FHA regulatory bodies, have been using the money collected via settlement to infuse the industry to the tune of $1.7 billion.
Regions Financial Corporation (NYSE:RF) and other small banking players are now in various stages of investigations or have already completed in detailed probes.
Apparently, the strategy of the government was to first work out the guidelines on mortgage settlements with the larger players and then move in on the smaller lenders in the same segment.
However, the upside for the company in these troubled times is the opening of the new coverage by analyst firm Stephens.
Considering the fact that the stock has been able to garner pre-market brownies to the tune of 1%, and with the likely proposition that other analysts too would soon offer coverage, the likely hood of rally is possible for RF.
The banker with a trademark financial service definitely is in for the long-haul as CEO Grayson Hall continues to run a tight outfit at RF now, bringing in changes such as mobile banking as well as private and high net worth wealth management.