Zions Bancorp initiated with a Buy at Citi

Citi initiated coverage of Zions Bancorp with a Buy rating and $42 price target. The analyst also opened a “positive catalyst watch” on the shares. The firm expects the bank will benefit from a Q3 beat to net interest income and subsequent positive revisions to its NII outlook. Zions trades at a valuation discount given poor timing on purchase of mortgage backed securities and deposit runoff after SVB, but it appears that NII has bottomed earlier than other banks and there is potential for positive earnings revisions from here, the analyst tells investors in a research note.