Baird upgraded Zions Bancorp (ZION) to Outperform from Neutral with an unchanged price target of $65. The firm tells investors to take advantage of the selloff in the shares yesterday. Zions declined 13% following a regulatory filing regarding potential fraud on a $60M syndicated loan, the analyst tells investors in a research note. Baird says the $1B decline in Zions’ market cap likely reflects fears surrounding contagion risk and liquidity concerns. It views the magnitude of the pullback as overdone. A $1B market cap decline over a $50M loss “seems a bit excessive,” the firm contends.
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