DA Davidson & Co Reduces PT to $25, Maintains Buy on Zions Bancorporation

DA Davidson & Co reiterates its Buy rating on Zions Bancorporation

and lowers its price target to $25 from $26, as the company posts EPS miss on higher expenses. DA Davidson & Co says, "ZION reported GAAP and Core EPS of $0.24 and $0.28, respectively, the difference between the two consisting of $12.1 million of OTTI in the company's CMO portfolio. ZION's NPAs declined 16.4% to 2.90% of loans+REO and NCOs declined 8bp to 1.05% of average loans. The negative provision coupled with net charge-offs served to reduce the loan loss reserve to 2.87% of periodend loans, a coverage ratio of 1.2x non-accrual loans. Classified loans declined 8% and management indicated that additional reductions are expected." ZION closed at $18.55 a share on Monday.