UBS analyst Brock Vandervliet downgraded Zions Bancorp to Neutral from Buy and lowered his price target for the shares to $56 from $67. The analyst had expected mid-single digit loan growth would build to the 6%-8% range after years of drag from energy and commercial real estate loan run-off. However, he now forecasts a 4%-5% level. Vandervliet also expected that raising of the systemically important financial institution threshold would re-focus management on generating higher growth and better efficiency. Recent commentary, however, indicates no change in posture, the analyst contends. He also finds Zions' recent capital announcement "underwhelming" saying it is designed to preserve board flexibility as opposed to making a commitment to maximize return.

UBS lowered the firm's price target on Zions Bancorp to $45 from $47 and keeps a Neutral rating on the shares. While "impressed" by Zions' ability to control deposit costs in a competitive backdrop, the firm thinks the liability sensitive positioning potentially puts the bank in "a precarious spot" in a higher-for-longer rate scenario and coming out of Q1 earnings the firm says it gets the sense that the net interest income trajectory from here is "well understood by the Street."