Zions Bancorp rises after Morgan Stanley upgrades stock on improving operating leverage outlook

Zions Bancorporation, National Association

02/03/2026 18:37

** Shares of lender Zions Bancorp ZION.O rise 2.15% to $58.51 after Morgan Stanley upgrades to "overweight" from "equal-weight"

** Cites recent underperformance and that operating leverage can surprise positively vs. both company guidance and consensus, with room for an acceleration in buybacks in 2027

** Brokerage says "management has guided to 100–150 bps of positive operating leverage in 2026, which we believe is conservative"

** "We are thinking about the operating leverage in two parts: "mechanical" from the roll-off of terminated swaps and "core" from underlying business" — MS

** Adds, "We are optimistic on loan growth as industry"

wide loan growth at small and mid-sized banks is accelerating"

** Seven of 23 analysts rate stock "strong buy" or "buy", 15 "hold" and one "sell"; their median PT is $65 — data compiled by LSEG

** Including session's move, ZION up 8.1% in the last 12 months

(Reporting by Pragyan Kalita in Bengaluru)

((Pragyan.Kalita@thomsonreuters.com))