A 12% jump in shares of Utah’s Zions Bancorp sparked healthy gains in the broader financial sector on Tuesday, particularly among its fellow regional banks.
Morgan Stanley analyst Ken Zerbe upgraded Zions’ (ZION) shares to overweight from equal weight, saying, “We believe the valuation of Zions has become quite compelling for long-term investors. We believe Zions has an attractive franchise and solid growth opportunities, making it an attractive investment for long-term holders.”
Zions rose 12% to $14.20 Tuesday, topping all gainers among the financial stocks in the S&P 500. The gain helped lift the KBW Regional Banking ETF (KRE ) by 4.5%, and drove the Financial Select Sector SPDR (XLF) up about 2%.
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