Baird analyst David George improved his rating on regional bank Zions Bancorp from neutral to "above market," CNBC reports. This is equivalent to a recommendation to buy shares of the credit organization. The $65 target price he set implies nearly 39% upside potential relative to the closing level on Thursday, October 16.

On Thursday, October 16, Zions securities collapsed by 13% after it reported a $50 million write-off due to two loans made to fraudulent borrowers. This reinforced market fears that Wall Street lending standards had become too lax and triggered a sell-off in the banking sector, not just in the US but around the world.

Analyst Baird estimates that Zions' difficulties are a unique case rather than a sign of a systemic problem. "The more than $1 billion decline in Zions' market capitalization is likely due to concerns that problems could spread to other banks, as well as liquidity worries. While to some extent we understand the sell-off, in our view its magnitude is excessive," George said in a note quoted by CNBC. - We believe the panic selling creates a great buying opportunity for Zions stock.

The analyst also noted the bank's "solid" fundamentals, the TV channel reported. According to him, the steady quality of lending should help avoid further losses.

This article was AI-translated and verified by a human editor

Share