ZION - Zions Bancorporation stock slides after Raymond James downgrades to Neutral

Zions Bancorporation (NASDAQ:ZION) shares are dipping 4.6% in Tuesday premarket trading after Raymond James analyst David Long downgraded the stock to Market Perform from Strong Buy on the lack of a specific positive catalyst. "Despite being asset sensitive, we reduced our net interest income forecast as its asset sensitivity has lessened and we expect a smaller balance sheet," Long wrote in note to clients. Weighing on the stock is higher operating expenses from inflation and higher rates, little room for additional reserve releases, noninterest income constrained by lower deposit fees, and the expectation that capital levels won't allow for material share buybacks. Long now estimates 2022 net interest income of $2.30B, down 1.8% from a year ago. He reduced 2022 EPS estimate by $0.27 to $4.93 and 2023 EPS estimate by $0.42 to $5.36. The analyst's Market Perform rating contrasts with the Quant rating of Strong Buy and the average Wall Street

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Zions Bancorporation stock slides after Raymond James downgrades to Neutral