Morgan Stanley analyst Manan Gosalia maintained a Hold rating on Zions Bancorporation National Association today and set a price target of $70.00.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Manan Gosalia has given his Hold rating due to a combination of factors impacting Zions Bancorporation. Despite the company’s earnings per share surpassing expectations when excluding a one-time loss, the recent charges related to two commercial and industrial borrowers have raised concerns. Management has assured that these charges are isolated incidents and have taken steps to review their portfolio to prevent future occurrences.
Additionally, the underlying credit quality has shown improvement, with a notably low net charge-off ratio and stable nonperforming assets. However, while the broader midcap banks group is expected to rebound, potential headline risks remain as other banks may also review their loan portfolios. These mixed signals contribute to the decision to maintain a Hold rating, balancing the positive credit metrics against the uncertainties posed by recent events.
In another report released today, Jefferies also maintained a Hold rating on the stock with a $55.00 price target.