Truist has started coverage on Zions Bancorp (ZION, Financial) by assigning a Hold rating and setting a price target of $52. The financial firm acknowledges Zions’ robust presence in the rapidly expanding Mountain West region, which could lead to a turning point in net interest income. However, Truist also highlights concerns regarding deteriorating credit trends, suggesting that the current valuation of the stock is reasonable.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 16 analysts, the average target price for Zions Bancorp NA (ZION, Financial) is $53.38 with a high estimate of $61.00 and a low estimate of $47.00. The average target implies an upside of 7.92% from the current price of $49.46. More detailed estimate data can be found on the Zions Bancorp NA (ZION) Forecast page.
Based on the consensus recommendation from 21 brokerage firms, Zions Bancorp NA's (ZION, Financial) average brokerage recommendation is currently 2.8, indicating "Hold" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Zions Bancorp NA (ZION, Financial) in one year is $51.34, suggesting a upside of 3.8% from the current price of $49.46. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Zions Bancorp NA (ZION) Summary page.
ZION Key Business Developments
Release Date: April 21, 2025
- Net Earnings: $169 million, or $1.13 per share, an 18% improvement year-over-year.
- Net Interest Margin: Increased to 3.10% from 3.05% in the previous quarter.
- Average Cost of Interest-Bearing Deposits: Decreased by 26 basis points compared to the previous quarter.
- Adjusted Pre-Provision Net Revenue (PPNR): $267 million, a 10% increase from the previous year.
- Efficiency Ratio: Seasonally higher but improved over last year's period.
- Net Loan Losses: $16 million, or 11 basis points annualized.
- Diluted Earnings Per Share: $1.13 compared to $1.34 in the prior period and $0.96 in the year-ago period.
- Net Interest Income: Increased by $38 million year-over-year, declined by $3 million from the prior quarter.
- Customer-Related Income: $158 million, a 10% decrease from the previous quarter.
- Adjusted Non-Interest Expense: Increased by $24 million to $533 million.
- Average Loans Growth: 0.5% over the previous quarter, 3% over the year-ago period.
- Average Deposit Balances: Declined 1.9% from the prior quarter.
- Total Funding Costs: Declined by 11 basis points during the quarter.
- Common Equity Tier 1 Ratio: 10.8%.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Zions Bancorp NA (ZION, Financial) reported a net earnings increase of 18% year-over-year, reaching $169 million or $1.13 per share.
- The net interest margin improved for the fifth consecutive quarter, rising to 3.10% from 3.05% in the previous quarter.
- The company was recognized by Coalition Greenwich as one of the top 10 banks in the industry, ranking third nationally in serving middle market clients.
- Zions Bancorp NA successfully acquired four branches in the Coachella Valley, adding approximately $630 million in deposits and $420 million in loans.
- The allowance for credit losses is well aligned with the current economic outlook, and loan charge-offs remained low, indicating strong credit quality management.
Negative Points
- Deposits decreased both on an ending and average basis in the first quarter, despite the acquisition-related deposits.
- Non-interest income saw a decline due to reduced capital market fees and a higher effective tax rate.
- The company faces challenges in forecasting future results due to heightened economic uncertainty and market volatility.
- There was a notable increase in 30 to 89 day past-due loans, raising concerns about potential credit quality issues.
- The outlook for loan growth is uncertain, with expectations of slower growth due to economic conditions and trade policy impacts.
