Stephens downgraded Regions Financial (RF) to Equal Weight from Overweight with a price target of $22, down from $23. In recent years, Regions has managed through the low-interest rate environment with a successful hedging strategy, but these hedges will begin to mature in 2023, which presents a headwind to net interest income growth versus peers, argues the firm. The firm also has a near-term fundamental concern about the company’s outsized consumer overdraft fees, where actions by competitors and potentially regulators/politicians presents a risk.
Goldman downgraded Universal Health (UHS) to Sell from Neutral with a price target of $150, down from $155. The firm sees “increasing pressure” in the inpatient psychiatric labor market and believes there are better opportunities to play the acute care recovery where Universal Health has “just” 45% exposure as a percent of EBITDA. The firm sees downside to consensus EBITDA estimates and believes the stock as likely to underperform over the next year.