Zions Bancorp (NASDAQ:ZION) Franchise Value Under Pressure

Miller Tabak has lowered their price target and earnings estimate for Zions Bancorp (NASDAQ:ZION), while maintaining a "Sell" rating on the financial institution.

Concerns are their franchise could drop in value because of moves that are diluting the shares of the company.

Miller Tabak said, "In recent quarters, ZION has successfully managed to convert a considerable amount of subordinated debt into new preferred stock, while also selling new common and preferred stock to the public. This had resulted in some dilution to common shareholders, and we estimate that ZION is not finished de-leveraging its capital structure."

Zions closed on Monday at $19.25, falling $0.25, or 1.28 percent. Miller has a price target of $16.95 on them.