RBC Capital reiterates Sector Perform rating on Zions Bancorp, $76 price target

Zions (ZION) reported Q3 2026 net interest margin at 3.23%, down from prior periods. Loans grew 3.7% annualized, deposits 8.8%. Adjusted pre-provision net revenue was $338M, up 2% QoQ. The company acquired a multifamily agency lending business, expecting $17M-$20M revenue in 2027. Wealth management and strategic products drive growth. Net interest income rose 1% QoQ to $684M, but margin declined due to higher deposit costs.

TD Cowen maintained a Hold rating on Zions Bancorp with a $69 price target, implying a 298.8% upside from the Oct 19 close of $17.30. The bank's recent earnings missed expectations due to weaker net interest income and higher expenses, raising concerns about growth and execution risk. Loan growth guidance is modest, and the bank relies on net interest margin expansion for income.

DA Davidson raised its price target for Zions Bancorp (ZION) to $80 from $79, citing an earnings beat driven by provision benefits. The bank reported core EPS of $1.73, exceeding forecasts. ZION trades at a P/E of 8.05 and PEG of 0.17. Six analysts revised earnings upwards. The bank projects 8%-12% net interest income growth. Q3 2026 EPS was $1.78, beating estimates, but revenue missed forecasts. Jefferies lowered its target to $75.

Jefferies reduced Zions Bancorp's (ZION) price target to $75 from $80, citing a net interest income (NII) miss, though it maintained a Buy rating. ZION reported core EPS of $1.77, beating estimates, but core pre-provision net revenue missed expectations. The stock has a P/E ratio of 8.05 and a PEG ratio of 0.19, suggesting undervaluation. ZION guided for 8-12% NII growth over the next 12 months and a mid-3% net interest margin by 2027.

Zions Bancorp (ZION) reported Q3 2026 earnings up 20%, driven by deposit growth. Net interest margin fell 4 basis points sequentially. Full-year 2026 operating leverage guidance was cut to 40-50 basis points. Loan growth outlook was reduced to 2-4% for Q3 2027, with caution on commercial real estate. Deposit costs are expected to rise to 2%. The company anticipates $17-20M revenue from the Basis acquisition in 2027. Share buybacks may increase, subject to regulatory approval.

Zions Bancorporation reported Q3 2026 earnings per share rose 20% to $1.78, driven by improved credit quality. Net income increased to $262M from $221M YoY. Non-interest income and net interest income also grew, while total interest income declined slightly.