"President-elect Donald Trump's victory, combined with continued Republican control of the Senate, bodes well for all banks as the potential for lower regulation and higher economic growth improves the outlook for earnings," equity researcher Steve Moss said in the report.
Moss raised the U.S. bank and financial services company's rating to "outperform" from "market perform" with a price target of $15 from $10.50. Additionally, the firm said it expects more upsides if policy changes are enacted and said banks should benefit from higher loan growth and higher rates.
FBR said risks include possible economic downturn in the banks Southeastern region, significant competition or dramatic changes in interest rates.
Regions Financial's stock is up more than 36 percent year to date.