UPDATE: UBS Downgrades Zions Bancorp (ZION) to Neutral

September 7, 2018 5:56 AM EDT
Get Alerts ZION Hot Sheet
Price: $51.63 --0%

Rating Summary:
    13 Buy, 23 Hold, 1 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 18 | Down: 6 | New: 25
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(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.

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 $53.32 yesterday.

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