Jefferies Cuts Price Target by 33% on Zions Bancorp (ZION) Following Meeting with CFO
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Price: $68.14 +0.37%
Rating Summary:
13 Buy, 26 Hold, 3 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 8 | Down: 6 | New: 26
Rating Summary:
13 Buy, 26 Hold, 3 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 8 | Down: 6 | New: 26
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Jefferies is maintaining its Hold rating on shares of Zions Bancorp (NASDAQ: ZION), but is cutting its price target from $27 to $18.
The firm sees directional upside in the shares if the company is able to box TARP payback and de-risk its CDO portfolio. Jefferies sees this as the next catalyst for the stock, while stating that there is currently more upside potential than downside risk.
The company tweaked its 2013 model which now shows a ROTE of 9 percent for the year. The firm forecasts that ROTE could rise into the low double-digits once asset sensitivity begins to show as rates rise.
An analyst at Jefferies comments, "We remain at Hold based in part on general caution on the group, but feel better about some of Zions' defensive characteristics and could become more constructive once TARP repayment and trust preferred CDO risk are boxed."
Jefferies raised its 2011 EPS estimate from $0.70 to $0.90 and reduced its 2012 and 2013 EPS estimates from $1.70 and $2.70 to $1.50 and $1.95.
For more ratings news on Zions Bancorp click here and for the rating history of Zions Bancorp click here.
Shares of Zions Bancorp closed at $16.32 yesterday.
The firm sees directional upside in the shares if the company is able to box TARP payback and de-risk its CDO portfolio. Jefferies sees this as the next catalyst for the stock, while stating that there is currently more upside potential than downside risk.
The company tweaked its 2013 model which now shows a ROTE of 9 percent for the year. The firm forecasts that ROTE could rise into the low double-digits once asset sensitivity begins to show as rates rise.
An analyst at Jefferies comments, "We remain at Hold based in part on general caution on the group, but feel better about some of Zions' defensive characteristics and could become more constructive once TARP repayment and trust preferred CDO risk are boxed."
Jefferies raised its 2011 EPS estimate from $0.70 to $0.90 and reduced its 2012 and 2013 EPS estimates from $1.70 and $2.70 to $1.50 and $1.95.
For more ratings news on Zions Bancorp click here and for the rating history of Zions Bancorp click here.
Shares of Zions Bancorp closed at $16.32 yesterday.
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