Compass Point Maintains a 'Neutral' on Zions Bancorp (ZION); Cutting Estimates as NII Trends Remain Weak
Tweet
Share
E-mailGet Alerts ZION Hot Sheet
Price: $67.89 -0.59%
Rating Summary:
13 Buy, 26 Hold, 3 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 12 | Down: 15 | New: 40
Rating Summary:
13 Buy, 26 Hold, 3 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 12 | Down: 15 | New: 40
Join SI Premium – FREE
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.
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.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Nutanix (NTNX) PT Raised to $80 at Oppenheimer Into EPS
- Wolfe remains "broadly bullish on AI semis stocks", names Top Pick
- Seaport Global Securities Upgrades Analog Devices (ADI) to Buy, 'appears to be entering the sweet part of the cycle'
Create E-mail Alert Related Categories
Analyst Comments, Analyst EPS Change, Analyst EPS ViewRelated Entities
EarningsSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
