UPDATE: Baird Downgrades Zions Bancorp (ZION) to Underperform; Sell Into Strength
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Baird analyst David George downgraded Zions Bancorp (NASDAQ: ZION) from Neutral to Underperform with a price target of $49.00.
The analyst commented, " We believe the stock has a generally weak setup as forward P/PPNR valuations are elevated despite being based on overly optimistic earnings expectations. Consensus NII estimates seem high to us and are not accounting for the eventual roll-off of PPP income as well as the potential for excess liquidity to restrain loan growth. Shares seem likely to underperform as PPP fees roll off and investors revise models to reflect the headwind. A ~45% premium to historical PPNR multiples seems steep given the tough fundamental outlook."
Shares of Zions Bancorp closed at $60.20 yesterday.
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