DA Davidson lowered its recommendation on Regions Financial to Neutral from Buy, citing revenue headwinds. Analyst Peter Winter said the bank's mid-quarter update signals another soft quarter for revenue, with capital markets revenue expected to trend closer to first-quarter levels rather than the low end of the previously guided $90 million to $105 million range. Winter noted that real estate capital markets remain under pressure due to elevated rates, and expressed skepticism about management's expected rebound in the second half of 2026 given futures markets forecasting one or two rate hikes this year. The firm cut its price target to $33 from $35 and now forecasts 2% fee income growth in 2026, below the company's guidance of 3% to 5%.
Regions Financial CorporationAnalyst downgrade and price target cut due to revenue headwinds and lower fee income growth forecast