As reported previously, Baird analyst David George upgraded Regions Financial (RF), Fifth Third (FITB), and First Horizon (FHN) to Outperform from Neutral based on the recent selloff on the coronavirus concerns. He does not believe the virus will result in permanent impairment to earnings power for banks.

Truist lowered the firm's price target on Regions Financial to $20 from $22 and keeps a Hold rating on the shares as part of a broader research note recapping Q1 earnings among Community and Regional Banks. The firm's updated model for Fed funds rate forecast calls for zero cuts in 2024 and four 25bps cuts in 2025 from three in 2023 and 2024 previously, the analyst tells investors in a research note. Truist is also revising its FY24 and FY25 EPS on the bank to $1.93 and $2.12 from $1.97 and $2.15, with estimate revisions primarily driven by higher loan loss provisioning. Regions' net charge-offs were also "at the high-end" of management's guidance of 40bps to 50bps in Q1, the firm adds.