Zions Bancorp (ZION) PT Raised to $55 at Stephens
Stephens analyst Terry McEvoy raised the price target on Zions Bancorp (NASDAQ: ZION) to $55.00 (from $53.00) while maintaining a Equal Weight rating.
The analyst commented: "Zions reported a solid ~9% operating PPNR beat in 3Q24, supported by positive net interest income trends and lower-than-expected operating expenses. Last quarter, EPS benefited from an LLP that was less than half of the consensus view, supported by NCOs of only 2bps. Nonperforming assets increased 39%, and classified loans rose 66% Q/Q, partly due to downgrades in the multifamily portfolio (2021/2022 vintages) given longer lease-ups and concessions. Zions' new grading methodology focuses more on cash flow over collateral values/strength of sponsors. Interpreting management's inscrutable outlook for 3Q25 implies an upside to our estimates; 2025 EPS is now $4.85 from $4.65. Management discussed the new customer adds coming from the branch deal in California last quarter ($730 mil of deposits / $420 mil. of loans) but expressed limited interest in future deals. Buybacks remain off the table as tangible capital continues to build. Maintain EW and $55 PT (from $53)."