Compass Point Maintains a 'Neutral' on Zions Bancorp (ZION); Cutting Estimates as NII Trends Remain Weak
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Price: $27.39 +2.01%
Rating Summary:
10 Buy, 14 Hold, 2 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 11 | Down: 35 | New: 23
Rating Summary:
10 Buy, 14 Hold, 2 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 11 | Down: 35 | New: 23
Trade ZION Now!
Compass Point maintains a 'Neutral' on Zions Bancorp (NASDAQ: ZION) price target of $20.50.
Analyst, Mike Turner, said, "The respositioning of the company's capital structure should add meaningfully to earnings over the next three years; however, 1Q12 results show that core revenue trends should remain under pressure due to the impact of downward repricing on loan yields (core NII was down $9MM Q/Q). Further, loan demand should improve in 2H12 as the C&D and Owner Occupied portfolios stabilize, but underlying trends remain challenged as Small Business demand continues to remain tepid. While lower credit-related costs will provide an offset to these headwinds, we need the prospect of increasing rates (ZION is one of the more asset sensitive names in our coverage universe) or a material improvement in loan demand to become more constructive on the name. Alternatively, a pull-back in the shares below $20 would improve our view of the risk/reward." (FY12 EPS estimate cut from $1.60 to $1.40 and FY13 form $1.91 to $1.87)
For an analyst ratings summary and ratings history on Zions Bancorp click here. For more ratings news on Zions Bancorp click here.
Shares of Zions Bancorp closed at $20.81 yesterday, with a 52 week range of $13.18-$24.71.
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Analyst, Mike Turner, said, "The respositioning of the company's capital structure should add meaningfully to earnings over the next three years; however, 1Q12 results show that core revenue trends should remain under pressure due to the impact of downward repricing on loan yields (core NII was down $9MM Q/Q). Further, loan demand should improve in 2H12 as the C&D and Owner Occupied portfolios stabilize, but underlying trends remain challenged as Small Business demand continues to remain tepid. While lower credit-related costs will provide an offset to these headwinds, we need the prospect of increasing rates (ZION is one of the more asset sensitive names in our coverage universe) or a material improvement in loan demand to become more constructive on the name. Alternatively, a pull-back in the shares below $20 would improve our view of the risk/reward." (FY12 EPS estimate cut from $1.60 to $1.40 and FY13 form $1.91 to $1.87)
For an analyst ratings summary and ratings history on Zions Bancorp click here. For more ratings news on Zions Bancorp click here.
Shares of Zions Bancorp closed at $20.81 yesterday, with a 52 week range of $13.18-$24.71.
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