Zions Bancorp rises after Morgan Stanley upgrades stock on improving operating leverage outlook

Shares of lender Zions Bancorp ZION.O rise 2.15% to $58.51 after Morgan Stanley upgrades to "overweight" from "equal-weight"

Cites recent underperformance and that operating leverage can surprise positively vs. both company guidance and consensus, with room for an acceleration in buybacks in 2027

Brokerage says "management has guided to 100–150 bps of positive operating leverage in 2026, which we believe is conservative"

"We are thinking about the operating leverage in two parts: "mechanical" from the roll-off of terminated swaps and "core" from underlying business" — MS

Adds, "We are optimistic on loan growth as industry"

wide loan growth at small and mid-sized banks is accelerating"

Seven of 23 analysts rate stock "strong buy" or "buy", 15 "hold" and one "sell"; their median PT is $65 — data compiled by LSEG

Including session's move, ZION up 8.1% in the last 12 months