Barclays Maintains an 'Equalweight' on Zions Bancorp (ZION); 3Q11 EPS Preview - Net Interest Margin Sounds Fine; Loans Could Be the Concern

Barclays maintains an 'Equalweight' on Zions Bancorp (NASDAQ: ZION) price target of $27.00.

Barclays analyst says, "We expect ZION to post 3Q11 EPS of $0.34 versus consensus of $0.33. Note that our 3Q11 EPS estimate includes the impact of accelerated discount amortization tied to its sub debt exchange. Discount accretion is expected to total $7.5mn (6bps of NIM) in 3Q11 compared to $61mn (53bps) in 2Q11."

"While at our mid-September conference, ZION was talking to a relatively stable core net interest margin (plus discount accretion should be less of factor going forward), despite its relatively perceived asset sensitivity and loan growth commentary sounding a bit more guarded, particularly in Texas. Questions on TARP repayment timing and equity issuance requirements also remain."

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 $15.88 yesterday.

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