Zions Bancorp target raised by RBC on strong 2Q earnings By Investing.com

On Tuesday, RBC Capital Markets adjusted its outlook on Zions Bancorp (NASDAQ:ZION) shares, increasing the price target to $54.00 from the previous $48.00 while maintaining a Sector Perform rating.

This adjustment follows the company’s second-quarter earnings report, which showcased positive core trends, leading to the financial institution surpassing revenue expectations and demonstrating effective core expense management.

The report from RBC Capital highlighted Zions Bancorp’s performance, noting that, aside from a moderate uptick in classified assets, credit metrics remained controlled. Additionally, the provision for credit losses was lower than anticipated, contributing to the earnings beat. The analyst at RBC Capital underscored the favorable results and the bank’s ability to manage its expenses tightly during the quarter.

Looking ahead, the 12-month forecast for Zions Bancorp has been revised upward, with expectations for increased spread revenues. RBC Capital’s perspective on the bank’s fundamental outlook for the year 2024 remains positive and consistent, supported by the latest financial data.

The analyst also mentioned fine-tuning their estimates, reflecting a detailed review and adjustment of forecasts based on the recent performance indicators. This revision of the price target suggests that RBC Capital sees potential in Zions Bancorp’s stock, considering the recent earnings and the bank’s financial trajectory.

Zions Bancorp’s second-quarter earnings have thus provided a basis for RBC Capital to reassess the bank’s stock value, leading to an updated price target that reflects the company’s current and anticipated performance.

In other recent news, Zions Bancorp reported better-than-expected core results for the recent quarter, resulting in Citi raising its price target for the bank’s shares to $53.00 from $45.00, while maintaining a Neutral rating.

The bank’s net interest income trends surpassed expectations, contributing to a positive outlook. Analysts from Citi anticipate that Zions Bancorp will experience a gradual increase in its cumulative beta as the second half of 2024 approaches.

RBC Capital also adjusted its price target for Zions Bancorp, increasing it to $47.00 from the previous $46.00, noting the bank’s solid core trends with revenues surpassing expectations due to a strong margin and a rise in net interest income.

On the other hand, UBS lowered its price target from $47.00 to $45.00, expressing concerns regarding the bank’s Net Interest Income trajectory and its liability-sensitive position in a high-interest-rate environment.

In addition to these developments, Zions Bancorp declared a quarterly dividend of $0.41 per common share and regular quarterly dividends on its perpetual preferred shares. These announcements further demonstrate Zions Bancorp’s commitment to providing value to its shareholders.

InvestingPro Insights

In tandem with RBC Capital Markets’ updated outlook on Zions Bancorp, key metrics from InvestingPro provide additional context to the bank’s financial health. With a market capitalization of $7.31 billion and a P/E ratio that has remained stable at approximately 12.42, Zions Bancorp presents a value-oriented profile in the banking sector. Notably, the bank has demonstrated consistent shareholder returns, increasing its dividend for 11 consecutive years and maintaining these payments for over half a century. Moreover, analysts have recognized this stability, revising earnings estimates upwards for the upcoming period.

InvestingPro data also highlights Zions Bancorp’s robust performance in the stock market, with the stock trading near its 52-week high and delivering strong returns over the past month and quarter. The bank’s ability to generate a positive return on assets and its adjusted operating income margin of 34% further underscore its operational efficiency. For investors seeking additional insights and tips, InvestingPro offers more analysis, including 6 additional InvestingPro Tips for Zions Bancorp, which can be accessed at https://www.investing.com/pro/ZION. To enhance your investing strategy, use coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription.

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