Zions Bancorporation shares surge Friday amid banking crisis
The uptrend comes as JP Morgan forecasts that shares of the Utah-based financial giant will do well in the coming months.
Nearly two months after plummeting amid bank alerts, Zions Bancorp stock is rising.
Shares of the Utah-based lender were up more than 18% as of 11 a.m. Friday from the last close.
The uptrend comes as JPMorgan upgraded Zions from underweight to overweight. That means analysts believe the stock will perform well and increase returns in the coming months.
The forecast average share price of the regional bank for April 24, 2024 has been set at $38.88, according to financial research site Fintel. That’s 95.1% higher than Thursday’s close of $19.93.
If Zions meets guidance, the stock still won’t recover to prior levels after falling dramatically in late February and early March. Back then, the bank’s share price fell from about $50 to less than $30, and it has continued to fall since mid-April.
Zions has also suffered other setbacks, from earnings falling below Wall Street’s mark to Moody’s Investors Service downgrading the bank’s credit rating. Zions’ leadership tried to reassure investors after the earnings report, downplaying the Moody’s downgrade. Bank executives noted that three other major rating agencies left Zions’ rating unchanged.
Regional banks across the country have tried to convince the general public that they are financially healthy. This also includes showing confidence in one’s own share. Regulatory filings show Zions executives recently spent nearly $2 million investing in the bank’s distressed stock, the New York Times reported.