Zions Bancorp (ZION) PT Raised to $70 at KBW Following 'Solid PPNR Results'

Keefe, Bruyette & Woods analyst Christopher McGratty raised the price target on Zions Bancorp (NASDAQ: ZION) to $70.00 (from $65.00) while maintaining a Market Perform rating.

The analyst commented: "Solid PPNR results, though offset in part by higher credit costs/migration trends. We are increasing our 2025/2026E by 6%/5% on stronger NII+fees, and with the stock at a mid-single-digit P/E discount to BKX peers, a positive re-rating is likely near term, especially given the outlook for positive operating leverage.

Core PPNR trends were favorable in 4Q24, and the 2025 guide drives decently positive EPS revisions (+6% to 2025E and +5% to 2026E). Underlying this improved outlook is a commitment to positive operating leverage, with our model assuming 200bps in both 2025/2026 and improved operating efficiency. At 10x our revised 2026E, ZION trades at a midsingle-digit P/E discount to BKX peers, and we believe positive re-rating toward peer levels is very achievable. The one near-term caveat is the market's digestion of this quarter's credit migration/normalization (elevated 4Q24 NCOs and a 37% q/q increase in classifieds). We remain Market Perform the shares, but believe over the near term the positive 2025 guidance should support the stock."

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