UPDATE: Sterne Agee Upgrades Zions Bancorporation to Neutral, Raises PT

In a report published Friday, Sterne Agee Group upgraded its rating on Zions Bancorporation ZION from Underperform to Neutral, and raised its price target from $18.00 to $23.00. Sterne Agee noted, “We are upgrading ZION to Neutral from Underperform. We have been cautious on ZION due to its costly capital structure, including its relatively prolonged exit from TARP, and its persistent volatility tied to core pre-provision profit. However, with repayment of the residual TARP imminent, our sense is that the optionality tied to the elevated cost of capital/financing will begin to improve and pre-provision profits should slowly begin to increase--even in a tough rate environment.” Zions Bancorporation closed on Thursday at $20.80.