Zions Bancorp (ZION) PT Raised to $68 at Evercore ISI

Evercore ISI analyst John Pancari raised the price target on Zions Bancorp (NASDAQ: ZION) to $68.00 (from $61.00) while maintaining a Outperform rating.

The analyst comments "Increasingly confident in fundamental inflection; reiterate Outperform. We hosted investor meetings with Zions last week in Boston. Joining us was Ryan Richards (CFO) and Andrea Christoffersen (Head of IR). Discussions were dominated by inflecting NII/NIM dynamics, potential expense flexibility, credit progression, and regulatory outlook post-Trump election. Bottom Line: We are increasingly confident in a fundamental inflection at ZION, which should drive a strengthening of returns in 2025 & 2026. Despite noted asset sensitivity, ZION’s underlying NII momentum should continue as loan demand improves and previously conservative deposit pricing is walked back. Top line improvement is also likely bolstered by expanding capital markets capabilities and wealth penetration as investments bear fruit. ZION’s expense outlook is also encouraging, with the completed deposit system conversion & ongoing expense containment to support efficiency gains. We expect this outlook to support ~300 bps of POL over the next two years. Credit continues to garner attention given recent revisions to risk ratings & slow burn of CRE. However, we remain confident that ultimate loss content remains manageable. While capital flex has been limited by AOCI considerations, regulatory thawing could support a more offensive stance over time. ZION’s shares have outperformed the BKX by 9.5% since 3Q24 earnings and by 4.8% since Trump’s election, but still trade at a modest discount to peers (12.5x 2025 P/E vs. peers 12.8x) – and on earnings unadjusted for a potential Trump bump (stay tuned for Trumponomics Rd 2 quantification). Given confidence in ZION’s improving growth & return profile, we reiterate our Outperform. Our estimates remain unchanged at this time, but we revise our TP to $68 to reflect higher sector valuations."

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