Zions Bancorp (ZION) Stock Forecast & Price Target

Zions Bancorp is projected to continue its positive momentum with projected increases in loan growth and net interest income, as well as strong customer fee income. The company's strong focus on small and midsize commercial banking, as well as its strategic partnerships, sets it up for steady growth and potential for positive operating leverage. However, risks such as credit quality deterioration and exposure to interest rate changes should be closely monitored.

Zions Bancorp is heavily reliant on borrowing to support weak deposit growth, with a decline in net interest income due to flat net interest margins and lower core loan yields. They also face headwinds from terminated swaps, decreasing deposit costs, and a decrease in average investment securities. Despite efforts to control asset sensitivity, a single rate hike could still drive net interest income and leverage lending risks. The company's negative provision and low NCOs have only temporarily improved strong credit metrics, while concerns remain around their period-end loan growth, which is expected to be only moderately increasing.