JPMorgan analyst Steven Alexopoulos downgraded Zions Bancorp to Underweight from Neutral with a price target of $46, down from $49. The analyst believes regional banks are at risk of seeing negative earnings revisions in coming quarters. With the guidance that Zions provided on the Q4 earnings call, the company is at the higher end of the risk spectrum in terms of potentially missing 2023 and 2024 consensus estimates, the analyst tells investors in a research note. The firm sees Zions’ net interest income guidance for Q4 as a "stretch." With a high expectations bar being set for earnings, combined with the shares trading at a "steep premium" to peers, the stock offers an unfavorable risk/reward, JPMorgan contends.
Published first on TheFly
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