UPDATE: Goldman Sachs Lowers PT on Zions Bancorporation from $17 to $16.50
Goldman Sachs reiterated a Sell rating on Zions Bancorporation (NASDAQ: ZION) and lowered its price target from $17.00 to $16.50.
Goldman Sachs noted, “ZION's 2Q core earnings of $0.26 fell short of our expectations of $0.29 as higher expenses offset an in-line top line. While loan growth improved, its margin saw outsized declines and we see minimal levers left to offset the current environment. We expect outsized margin pressure to continue to weigh on operating results, while limited capital flexibility due to 2H12 TARP repay likely limits any improvement in returns the next few quarters. As a result, we reiterate our Sell rating on ZION and lower estimates (down 3% in both 2013 and 2014) post results. We tweak our 2012 EPS to reflect lower 2H provisioning.”
Zions Bancorporation closed at $18.57 on Monday.
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