Jefferies Lowering Estimates On Zions Bancorp. (NASDAQ: ZION)

Jefferies & Co. is lowering its estimates on shares of Zions Bancorp. ZION. It has a Hold rating and a $25 price target on shares. In a note to clients, Jefferies writes, "Our price target of $25 applies a 13.5x multiple to our normalized earnings estimate of $2.20 (discounted 2 years at 10%). This is lower than the bank's historical forward multiple of 14x (2000-2007) to account for lower post-cycle growth and earnings volatility due to debt conversions. Risks include a slower pace of economic recovery, potential for additional equity issuance (aside from what is expected for TARP repayment), and greater-that-expected CRE losses." Shares of ZION lost 11 cents yesterday to close at $24.60, a loss of 0.45%.