DA Davidson upgrades Zions Bancorp to Buy on low valuation

DA Davidson analyst Peter Winter last night upgraded Zions Bancorp to Buy from Neutral with an unchanged price target of $56. Zion trades at the second lowest price-to-earnings multiple in the group versus historically trading at a premium, Winter tells investors in a research note. He believes the bank’s net interest income will come in above consensus in Q3 and increase throughout 2023. The analyst is also not concerned with the tangible common equity ratio falling below 4%, saying the risk of Zions having to sell securities at a loss is "remote." And if the U.S. economy enters a mild recession, investor focus will turn to credit and the bank’s credit metrics are strong, writes Winter.