ZION - Zions Still Has Attractive Long-Term Drivers After This Rally
- Zions' fourth quarter performance was mixed, with reserve releases driving a core earnings beat, but with weaker than expected core pre-provision profits.
- Net interest income and charge-offs are likely to remain unimpressive on a year-over-year basis in 2021, but the worst-case scenarios seem off the table now.
- One of the most aggressive participants in the PPP loan program, Zions has added around 15,000 new customers and holding on to these customers could meaningfully improve long-term growth prospects.
- Zions shares have risen beyond a "can't miss" value argument, but the valuation seems quite reasonable relative to the growth potential and Zions still looks poised to deliver double-digit long-term returns.
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Zions Still Has Attractive Long-Term Drivers After This Rally