Regions Financial PT lifted at Compass Point, rating cut at RBC

• Compass Point analyst Kevin Barker reiterates his Buy rating and lifts the price target to $11.50 from $11 following Region's (RF -0.5%) Q1 results yesterday. The move comes as he slightly boosts his 2016 EPS estimates due to increased balance sheet leverage.
• Barker, however, does take note of a significant increase in provision expense as the bank gets ahead of likely deterioration in loans in healthcare, energy, and other sectors. He expects provisions to remain elevated through next year, but be offset with operating efficiency and balance sheet growth.
• RBC sees things differently, and throws in the towel on its Outperform rating.
• Previously: Low-rate "torture" for the regional lenders (April 21)
• Previously: Regions Financial flat after inline results (April 21)