UPDATE: Bank of America Merrill Lynch Reiterates Neutral Rating, Lowers PT on Zions Bancorporation

In a report published Friday, Bank of America Merrill Lynch reiterated its Neutral rating on Zions Bancorporation

, but lowered its price target from $22.00 to $20.00. BofA Merrill Lynch noted, “ZION shares are now trading at 0.9x TBV and we now think EPS risk is fully priced into the shares. At current levels, we think ZION offers value for investors with longer-term time horizons. However, over the next 12 months, we believe material, sustained upside for ZION is unlikely due to lower earnings quality, the overhang of a possible capital raise and longer term ROTEs that imply ZION will not be able to earn its cost of capital.” Zions Bancorporation closed on Thursday at $19.54.