Analyst Manan Gosalia of Morgan Stanley maintained a Hold rating on Zions Bancorporation National Association, boosting the price target to $63.00.
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Manan Gosalia’s rating is based on a combination of factors that reflect both positive trends and potential challenges for Zions Bancorporation. The company’s recent performance showed an improvement in operating earnings per share, driven by increased revenues and reduced provisions. Additionally, the net interest margin (NIM) expanded for the sixth consecutive quarter, supported by lower deposit costs and accelerated loan growth. These positive developments led to an upward revision in forward estimates.
However, despite these encouraging signs, there are considerations that warrant a Hold rating. While higher asset sensitivity is beneficial in the short term, it may pose a challenge in the future. Furthermore, although fees have increased, this has been accompanied by rising expenses, which could impact operating leverage. As a result, while the near-term outlook appears favorable, the potential for future headwinds justifies a cautious approach, leading to the Hold recommendation.
Gosalia covers the Financial sector, focusing on stocks such as Cadence Bank, M&T Bank, and Comerica. According to TipRanks, Gosalia has an average return of 8.6% and a 58.56% success rate on recommended stocks.
In another report released today, Jefferies also upgraded the stock to a Hold with a $60.00 price target.