UPDATE: DA Davidson Reiterates Buy on Zions Bancorporation on Improving Fundamentals

DA Davidson reiterated its Buy rating and $26 price target on Zions Bancorporation

as fundamentals improve and upside finds support through 2013 catalysts. DA Davidson commented, "Despite strong performance year-to-date (ZION shares +22.9% vs. Nasdaq Bank Index +10.6%), we believe ZION shares have additional upside from current levels. With improving fundamentals (asset quality and loan growth), a decline in the rate of NIM compression/NII pressure, and capital structure rationalization opportunities in 2013, we think the shares should provide an attractive return over the next 12-18 months. Our $26 price target represents a 13x multiple on our 2014E EPS of $1.91 and is 1.15x our 2013E TBV of $22.41." Zions Bancorporation closed at $20.66 on Friday.