Shares of Regions were down 1.33% to $11.10 in mid-morning trading Wednesday. They finished strong Tuesday despite the downgrade, which came about 90 minutes before the close of trading.
Mitchell lowered his recommendation to hold from buy while raising his price target to $11.33 from $11.15 According to his note, the move was primarily driven by outperformance of the Birmingham, Al.,-based bank's shares.
Shares of Regions are up some 40% over the past 12 months, versus a roughly 30% gain for the KBW Bank Index. The index opened lower Wednesday but was roughly flat by mid-morning.
Mitchell argues Regions "remains challenged to accumulate enough new capital to grow the business faster."
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