Robert W. Baird analyst David George upgraded the rating on Zions Bancorporation National Association to a Buy today, setting a price target of $65.00.
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David George has given his Buy rating due to a combination of factors that suggest the recent market reaction to Zions Bancorporation’s situation is overly negative. The bank experienced a significant decline in its market capitalization following news of a potential fraud involving a $60 million syndicated loan. Despite this, George believes the market’s reaction, resulting in a $1 billion drop in market cap, is excessive and presents a buying opportunity.
George points out that Zions Bancorporation has a strong historical record of underwriting quality, which should mitigate further losses. The bank’s current valuation, trading at less than five times the next twelve months’ pre-provision net revenue and approximately 1.25 times tangible book value, is attractive. Furthermore, the bank’s capital position, with a CET1 ratio of around 11%, provides confidence in its ability to absorb losses and maintain liquidity. These factors, combined with the belief that the fraud incident is isolated, underpin George’s Buy rating.
According to TipRanks, George is a 5-star analyst with an average return of 10.9% and a 65.44% success rate. George covers the Financial sector, focusing on stocks such as Zions Bancorporation National Association, Associated Banc-Corp, and First Horizon.