Manan Gosalia, an analyst from Morgan Stanley, reiterated the Hold rating on Zions Bancorporation National Association (ZION – Research Report). The associated price target remains the same with $52.00.
Manan Gosalia has given his Hold rating due to a combination of factors influencing Zions Bancorporation’s performance. The recent earnings report showed that while the company’s earnings per share exceeded consensus expectations, this was largely due to lower provisions, which may not be sustainable in the current uncertain macroeconomic environment. Additionally, the net interest income (NII) did not meet Manan’s expectations, leading to a downward revision of future NII estimates.
Management’s cautious outlook on loan growth and potential rate cuts further contributed to the Hold rating. Despite these challenges, Zions Bancorporation remains committed to achieving positive operating leverage, which is a positive aspect. However, the overall negative sentiment and macroeconomic uncertainties, such as tariff-related issues, have led to a more conservative stance. Therefore, the Hold rating reflects a balanced view of the potential risks and opportunities facing the company.
In another report released today, KBW also maintained a Hold rating on the stock with a $58.00 price target.
Based on the recent corporate insider activity of 73 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of ZION in relation to earlier this year.