In a report released yesterday, Nicholas Holowko from UBS maintained a Hold rating on Zions Bancorporation National Association, with a price target of $63.00.
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Nicholas Holowko’s rating is based on a combination of factors that present a mixed outlook for Zions Bancorporation. The company reported a positive performance in its pre-provision net revenue (PPNR), with net interest income and fees surpassing expectations. However, this was overshadowed by a significant charge-off related to two specific loans, which raised concerns about credit quality. The provision expense exceeded street expectations, creating a headwind against the otherwise strong PPNR results.
Despite the challenges, there are positive signs for the future, such as the anticipated moderate increase in loan balances and net interest income. Additionally, deposit growth was stronger than expected, which could support future earnings. However, the credit overhang and the need for more clarity on the credit situation suggest a cautious approach, leading to the Hold rating. Holowko’s assessment reflects a balance between the company’s operational strengths and the uncertainties surrounding its credit position.
According to TipRanks, Holowko is a 2-star analyst with an average return of 2.7% and a 45.00% success rate. Holowko covers the Financial sector, focusing on stocks such as Zions Bancorporation National Association, Synovus, and Pinnacle Financial Partners.
In another report released on October 17, Morgan Stanley also maintained a Hold rating on the stock with a $70.00 price target.