UPDATE: ISI Group Initiates Coverage on Zions Bancorporation with Neutral Rating, $29 PT as Improvement Story is Underway

In a report published Tuesday, ISI Group analyst Keith Murray initiated coverage on Zions Bancorporation ZION with a Neutral rating and $29.00 price target. In the report, ISI Group noted, “We are initiating coverage of Zions with a Neutral rating and 12-month price target of $29. We think ZION's management team is very focused on improving the bank's ROTE and they are making progress on the funding side of the balance sheet. We think the market has been recognizing this improvement as ZION stock was an outperformer in 2012 and is also ahead of the pack in 2013 (+30% ytd). We think the stock could have modest upside in the near term until loan growth picks up and cash is put to work or the outlook for short-term interest rates improves. We understand that investors are likely going to look at CMA and ZION as their rate plays, and we chose CMA as it is cheaper on P/TBV, has a cleaner balance sheet, and also has M&A potential.” Zions Bancorporation closed on Monday at $27.11.