BofA upgrades Zions Bancorp to Neutral, says credit concerns overdone

As previously reported, BofA upgraded Zions Bancorp (ZION) to Neutral from Underperform with a price target of $62, up from $59. The firm, which calls credit concerns “overdone,” believes the current valuation discount to its pre-pandemic average captures above-trend credit risk, but neglects the bank’s tangible book value growth prospects. Last week’s fraud-related loan writedown does paint the bank’s risk management in a “poor light,” but the firm doesn’t believe it represents systemic issues, the analyst tells investors.