Zions Bancorp (ZION) Stock Forecast & Price Target

Zions Bancorp is supported by an improving earnings mix, as 3Q26 EPS beat expectations despite lower NII, while management’s guidance points to 8% to 12% NII growth and roughly 59% of earning assets repricing within 12 months. Its asset-sensitive balance sheet, with higher rates expected to lift NIM toward the mid-3.50%s, should drive stronger operating leverage, while diversified fee growth from capital markets, wealth management, and the Basis acquisition adds another earnings lever. Credit quality and capital also look constructive, with net charge-offs at 6 bps, classified loans at 3.40%, CET1 at 11.8%, and 1.1 million shares repurchased for $75 million in 3Q26.

Zions Bancorp is facing a weaker fundamental setup because loan growth has slowed to low- to mid-single-digit levels, with EOP HFI loans flat LQ and management now guiding 2% to 4% period-end growth in 3Q27 vs. 3Q26, reflecting pressure from higher rates and softer C&I lending. Net interest income and margin are also under strain, as 3Q26 NII of $684 million missed expectations and NIM fell 4 bps to 3.23% after higher deposit costs, while the bank’s deposit mix is shifting toward more expensive funding and $2.2 billion of brokered deposits mature in 4Q26. With competition weighing on pricing, deposit outflows remaining a risk, and the TCE ratio described as low, Zions appears vulnerable to further earnings pressure and balance-sheet risk.