BofA update shows where active managers are putting money
On Wednesday, DA Davidson reaffirmed its Buy rating on shares of Zions Bancorp (NASDAQ:ZION), with a steady price target of $57.00. Following recent investor meetings with the management team of Zions Bancorp, DA Davidson’s analyst Peter Winter provided insights into the bank’s current standing and future prospects. Despite the lack of new updates so soon after the company’s earnings report, the firm’s outlook remains positive. According to InvestingPro data, Zions, currently trading at $44.29 with a market cap of $6.52 billion, appears slightly undervalued based on its Fair Value analysis.
Winter noted that Zions’ management does not offer mid-quarter guidance, opting instead to concentrate on long-term goals rather than short-term market fluctuations. This approach aligns with the bank’s strategy of focusing on sustained growth over immediate results. DA Davidson’s analysis suggests that Zions Bancorp’s stock currently trades at a multiple that is below that of its peers, which indicates potential undervaluation. The bank’s commitment to long-term value creation is evidenced by its impressive 55-year streak of maintaining dividend payments, as highlighted in InvestingPro’s analysis.
The analyst highlighted the bank’s current valuation metrics, trading at roughly 8.1 times DA Davidson’s estimated earnings per share (EPS) for 2026 and 1.29 times the price to tangible book value (P/TBV). In comparison, the median for Zions’ peers stands at 8.9 times P/E and 1.43 times P/TBV. Current InvestingPro data shows a P/E ratio of 8.62x, with analyst price targets ranging from $47 to $61, supporting DA Davidson’s $57 target and reinforcing the stock’s potential upside.
Zions Bancorp’s focus on long-term planning over short-term market changes appears to be a key factor in DA Davidson’s continued endorsement of the stock. The firm’s analysis presents a case for Zions Bancorp as an undervalued entity within its sector, suggesting room for growth and reaffirming the Buy rating. The price target remains unchanged as the management team’s recent discussions with investors have not altered DA Davidson’s assessment of the bank’s financial health and market position. For a comprehensive analysis of Zions Bancorp’s valuation and growth prospects, investors can access the detailed Pro Research Report, available exclusively on InvestingPro, which offers in-depth insights into the company’s financial health and market positioning.
In other recent news, Zions Bancorp reported first quarter 2025 earnings that did not meet analyst expectations, with net earnings applicable to common shareholders at $169 million, or $1.13 per diluted share, below the anticipated $1.19 per share. Despite this, the earnings represented an 18% increase from the same quarter last year. The results were affected by an $0.11 per share charge to income tax expense due to a Utah tax law change, though the company expects this charge to accrete back into income over time. Additionally, Zions Bancorp completed the acquisition of four branches in California, adding $630 million in deposits and $420 million in loans.
Stephens analysts recently lowered the price target for Zions Bancorp to $52 while maintaining an Equal Weight rating, citing lower fees and higher operating expenses despite surpassing consensus EPS estimates. Meanwhile, DA Davidson adjusted its price target from $62 to $57, maintaining a Buy rating due to softer loan demand and diminished capital markets activity. Both firms noted the stabilization of classified and criticized loans and the potential for positive operating leverage in 2026. Zions Bancorp’s management remains confident in achieving positive operating leverage by effectively managing expenses.
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