Truist on Monday downgraded Regions Financial Corp. RF to hold from buy and cut the financial stock’s price target to $20 from $21. Truist analyst Brandon King said the firm is better able to withstand economic challenges with more downside rate protection, but revenue growth is expected to be more difficult. “We believe positive operating leverage becomes much more challenging beyond 2023 with revenue headwinds and expense initiatives,” King said. “Additionally, RF will likely be subject to increased regulatory capital requirements, increasing its cost of capital.” Truist analyst King said the firm sees limited upside in Regions Financial stock relative to its peers. Regions Financial stock has dropped 14.8% in 2023, compared to a 17.8% loss by the KBW Nasdaq Bank Index and a 7.7% increase by the S&P 500 SPX.
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