UPDATE: Jefferies Raises Target on Zions Bancorp to $20

Jefferies raises its price target on Hold-rated Zions Bancorp

to $20 from $18 on improving risk profile. Jefferies says, "We feel better about ZION's risk profile and earnings potential, but see interest income/revenue growth as challenging for the next few years. We like the longer-term story for the potentially powerful EPS inflection from higher rates, but remain Hold at this time looking for visibility of an improving trajectory. TARP payback plans are the next catalyst and we leave a 25% of TARP placeholder in our EPS." ZION closed at $19.16 a share yesterday.