Zions Bancorp stock rating upgraded by BofA as TBV growth offsets credit risks

Investing.com - BofA Securities upgraded Zions Bancorp (NASDAQ:ZION) from Underperform to Neutral on Thursday, while raising its price target to $62.00 from $59.00. The $7.63 billion regional bank currently trades at a P/E ratio of 9.26, which InvestingPro analysis indicates is low relative to its near-term earnings growth potential.

The upgrade reflects BofA’s assessment that Zions’ current valuation discount of 19% compared to its pre-pandemic average adequately accounts for above-trend credit risk but fails to recognize the bank’s tangible book value (TBV) growth potential.

BofA highlighted that Zions’ projected 15% TBV growth exceeds the peer average of 10%, creating a more balanced risk-reward profile for investors despite recent challenges.

The firm acknowledged that last week’s fraud-related loan writedown reflects poorly on Zions’ risk management practices but noted it doesn’t believe these issues are systemic or undermine progress the management has made since the Global Financial Crisis.

BofA’s price target increase stems from upward revisions to its 2026 earnings estimates for the regional bank.

In other recent news, Zions Bancorporation reported its third-quarter 2025 earnings, surpassing both earnings per share (EPS) and revenue forecasts. The company achieved an EPS of $1.48, slightly above the expected $1.46, and revenue reached $872 million, exceeding the anticipated $843.1 million. Following this, DA Davidson reiterated its Buy rating on Zions Bancorp , maintaining a price target of $69.00. This follows a recent credit loss pre-announcement that DA Davidson considers an isolated event after a review of the loan portfolio. Additionally, Keefe, Bruyette & Woods maintained its Market Perform rating with a $64.00 price target, noting a solid performance in pre-provision net revenue (PPNR) and strong asset quality trends. The bank reported only 4 basis points of net charge-offs, excluding a previously disclosed isolated charge-off. These developments highlight Zions Bancorp’s recent financial performance and analyst perspectives.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.