UPDATE: UBS Downgrades Zions Bancorp (ZION) to Neutral
- Bonds take a breather, Tencent tumbles
- Oil rises as markets expect further fall in inventories
- Tencent (TCEHY) Falls Sharply as State Media Describes Online Games as ‘Spiritual Opium’, Company Vows to Improve
- Antipodean currencies jump on central bank talk, US dollar subdued
- Sanofi (SNY) to Acquire mRNA Specialist Translate Bio (TBIO) for $3.2 Billion
News and research before you hear about it on CNBC and others. Claim your 1-week free trial to StreetInsider Premium here.
(Updated - September 7, 2018 8:25 AM EDT)
(updated to add analyst comments)
UBS analyst Brock Vandervliet downgraded Zions Bancorp (NASDAQ: ZION) from Buy to Neutral with a price target of $56.00 (from $67.00).
The firm is reducing full-year EPS estimates for 2018/2019 to $3.87/$4.14 from $3.90/$4.23.
Vandervliet said their previous Buy-rating was built on three pillars, none of which fully materialized and which they do not expect to change.
1) They expected mid-single digit loan growth would build to the 6-8% range after years of drag from energy and CRE loan run-off. They now forecast a 4-5% level.
2) They expected that raising of the SIFI threshold would re-focus management on generating higher growth, better efficiency, and a stronger ROTCE. However, recent commentary indicates no change in posture.
3) They expected release from CCAR would dramatically improve capital return. While it still could, they think the recent capital announcement was underwhelming and designed to preserve board flexibility as opposed to making a commitment to maximize return.
Shares of Zions Bancorp closed at $53.32 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- UPDATE: JPMorgan Downgrades Clear Secure Inc (YOU) to Neutral
- UPDATE: HSBC Starts Krispy Kreme (DNUT) at Buy
- UPDATE: Goldman Sachs Downgrades Old Dominion Freight Line (ODFL) to Neutral
Create E-mail Alert Related CategoriesAnalyst Comments, Analyst PT Change, Downgrades
Sign 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!