Zions Bancorp faces fresh Baird downgrade, shares pause after strong run

By Anna Wagner, Analysts & Consensus desk. Reviewed prior to publication on 2026-06-23, 11:33.

Zions Bancorp (US9897011071) sits at the center of a notable analyst rethink this week. Baird has downgraded the regional lender on NASDAQ to Neutral from Outperform, citing valuation after a marked outperformance versus both the KRE regional bank ETF and the S&P 500, according to an Investing.com summary.

What Baird is changing now

Baird sets its new Zions Bancorp price target at 68 dollars, down from an Outperform view but still above many regional peers, as reported by Investing.com. The broker notes that Zions shares have returned roughly 24 percent over the past three months, around 9 percentage points more than the KRE and 9 points more than the S&P 500 in the same period.

Despite the rating cut, Baird describes the fundamental outlook as solid and highlights that higher-for-longer US interest rates are supporting Zions Bancorp's asset-sensitive balance sheet, which benefits more quickly from rate increases on the asset side than on funding costs. The broker also points to a recent step up in share buybacks as an additional backstop for the stock in the current environment.

How other analysts view Zions

The Baird move comes against a backdrop of several more constructive analyst updates following Zions Bancorporation's first-quarter 2026 results, which delivered earnings per share ahead of expectations thanks mainly to lower provisions and taxes, according to the same Investing.com report. However, the bank's pre-provision pre-tax profit missed some forecasts due to higher operating expenses, underscoring cost discipline as a focus point.

TD Cowen recently lifted its Zions Bancorporation price target from 64 to 65 dollars, citing an improved 12-month net interest income outlook with expected year-over-year growth of 7 to 8 percent assuming no Federal Reserve rate cuts in the period, as summarized by Investing.com. DA Davidson, in turn, raised its target from 75 to 78 dollars and reiterated a Buy stance, pointing to a more optimistic revenue trajectory and management's confidence in achieving operating leverage improvements.

The business drivers behind the stock

Zions Bancorporation generates most of its revenue from traditional commercial and consumer banking in the US West, with a focus on loans and deposit services for small and mid-sized businesses and individuals, according to its corporate materials. The bank also earns fee income from areas such as wealth management, treasury management and capital markets services, which diversify its earnings beyond pure interest margins.

Where the Zions Bancorp shares trade today

Zions Bancorp shares (US9897011071) trade on NASDAQ, where they last changed hands around 63 to 64 dollars in recent sessions, according to exchange pricing data. That level reflects a period of consolidation after the strong three-month rally highlighted by Baird, and sits below the broker's new 68 dollar target but within the range referenced by other analysts.

This article is for informational purposes only and does not constitute investment advice, an offer, or a solicitation to buy or sell any securities. All data are based on sources believed to be reliable but cannot be guaranteed; investors should conduct their own research or consult a qualified advisor.