Zions Bancorporation (ZION) Maintains An Outperform Rating

Analyst David Rochester at FBR Capital Markets (NASDAQ: FBCM) has maintained an Outperform rating for Zions Bancorporation (NASDAQ: ZION).

FBR expects the company to return to profitability in the first-half of 2011, which should drive the shares of the company higher next year.

In the long term FBR expects the earnings at Zions to converge with their expectation, which is in the range of $2.70-$3.30 per share. The earnings estimate by FBR reflects some level of additional common equity raise associated with TARP repayment.

According to FBR, TARP repayment creates uncertainty around the shares of Zions Bancorporation, and other regional banks that have been part of the program in the near-term.

However, FBR is of the opinion that longer term the shares of the company remain attractive.

FBR Capital Markets has set a price target of $21 for Zions Bancorporation.