Zions Bancorp (ZION) Stock Forecast & Price Target

Zions Bancorp is positioned positively because 3Q26 earnings benefited from a negative $8 million provision, muted 2 bp net charge-offs, and an 11.8% CET1 ratio, showing both credit resilience and strong capital. Its outlook is further supported by an asset-sensitive balance sheet, with 59% of earning assets repricing within 12 months, and management’s guide for 8% to 12% NII growth as higher rates, deposit growth, and fixed asset repricing should lift margins. In addition, improving classified loans at 3.40%, stronger fee momentum, and $75 million of repurchases in 3Q26 suggest operating leverage and capital deployment can compound returns.

Zions Bancorp is facing a weaker fundamental setup as flat end-of-period HFI loans and softer C&I balances show muted lending momentum, while management’s 2% to 4% loan-growth outlook signals only low- to mid-single-digit expansion in a higher-rate environment. Earnings quality is also under pressure because 3Q26 NII of $684 million missed expectations and FTE NIM fell 4 bps to 3.23%, as higher deposit costs, a rising mix of interest-bearing deposits, and elevated funding competition offset benefit from lower borrowing costs. With $2.2 billion of brokered deposits maturing in 4Q26, elevated deposit outflows, and a low TCE ratio flagged as a regulatory risk, the stock’s downside case is reinforced by both margin compression and balance-sheet fragility.