Zions Bancorp (NASDAQ:ZION) Overhangs Weigh Bank Down, More Visibility Needed on Earnings

Zions Bancorp (NASDAQ:ZION) continues to be weighed down by a number of overhangs, especially in their commercial real estate portfolio, leaving little visibility and catalysts to suggest the bank will start to make money again.

FBR says, "Overall, we thought the quarter was in line with
expectations, considering the company still has a significant amount of problem credits to work through on its commercial real estate portfolio and will continue to see material one-time charges from its conversion of subordinated debt to preferred stock over the next two quarters...Given these overhangs, we remain on the sidelines, but could become more constructive on the stock when we have a clearer understanding of when ZION could make money and repay TARP. We are adjusting our FY11E operating EPS to $0.40 from $0.70 and introducing our FY12E operating EPS of $1.45."

FBR Capital maintains a "Market Perform" on Zions Bancorp (ZION), which was trading at $23.17, down $0.58, or 2.44 percent, as of 1:24 PM EST. FBR has a price target of $22 on Zions.