This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

7 Bank Stocks Loved by Deutsche Bank (Update 3)

Content on this page requires a newer version of Adobe Flash Player.

Get Adobe Flash player

Shares of Regions Financial (RF - Get Report) of Birmingham, Ala., closed at $5.53 Wednesday, rising 29% year-to-date.

Regions owes $3.5 billion in federal bailout money received in 2008 through the Troubled Assets Relief Program, or TARP.

The company agreed in January to sell its Morgan Keegan brokerage subsidiary to Raymond James Financial (RJF) for "total consideration of $1.18 billion."

O'Connor's price target for Regions is $6.00, and he estimates the company will earn 48 cents a share in 2012, followed by EPS of 75 cents in 2013.

The analyst says that an "outsized capital raise for TARP repayment is unlikely given fundamental improvement," including the Morgan Keegan sale, "improvement in credit quality in 4Q and an increase in capital ratios." O'Connor expects the company's Basel I Tier 1 capital "to exceed 9% by the end of 2012."

O'Connor also points out that "unlike some regionals, RF hasn't meaningfully released Reserves," which covered 3.5% of total loans at the end of 2011.

"Tarp uncertainty" remains an obvious risk for Regions, with O'Connor estimating that the company will eventually raise $1 billion in common equity to repay the government.

Interested in more on Regions Financial? See TheStreet Ratings' report card for this stock.

6 of 8

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Submit an article to us!
SYM TRADE IT LAST %CHG
BAC $16.11 0.00%
BBT $38.46 0.00%
C $53.76 0.00%
KEY $14.40 0.00%
JPM $63.61 0.00%

Markets

DOW 18,024.06 +183.54 1.03%
S&P 500 2,108.29 +22.78 1.09%
NASDAQ 5,005.3910 +63.9670 1.29%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs