Zions Bancorporation (NASDAQ: ZION)
Panic Selling May Have Created a Rare Opportunity in This Regional Bank
After last week’s sharp sell-off, Zions Bancorporation looks like one of those rare cases where emotion—not fundamentals—took control of the market. The stock dropped 13% in a single session after the bank disclosed a $50 million write-off tied to two fraudulent borrowers. The selloff wiped out roughly $1 billion in market value overnight — a reaction that appears wildly disproportionate to the actual loss.
Baird agrees, upgrading Zions to Outperform with a $65 price target, implying nearly 40% upside from where the stock currently trades around $50. The firm called the selloff “excessive” and described the event as an isolated incident, not a sign of systemic weakness. We tend to agree — fraud happens in banking, but what matters is whether it points to deeper credit or liquidity problems. In this case, the evidence suggests it does not.
Zions has a strong record of disciplined lending, solid underwriting, and conservative loan growth — qualities that tend to keep regional banks steady through turbulent cycles. With shares now deeply discounted, this looks like a clear opportunity for investors who can distinguish between short-term panic and long-term value.
Sometimes, the market gives you a gift wrapped in fear — and Zions may be one of those moments.
