Goldman Sachs analysts upgraded Zions Bancorp (NASDAQ:ZION) to Buy from Neutral, setting a price target of $71, which represents approximately 30% upside from current levels. The upgrade reflects optimism about Zions’ positioning for the next phase of the economic cycle and its potential to deliver significant returns.

Zions is expected to benefit from net interest margin (NIM) expansion as it lowers deposit costs and capitalizes on fixed-rate asset repricing. The bank is also well-positioned to gain from a recovery in small-to-medium enterprise (SME) and commercial loan growth, which should bolster its lending portfolio.

With a slightly asset-sensitive balance sheet, Zions is poised to take advantage of recent movements in interest rates, further enhancing its profitability. Additionally, the bank is forecasted to achieve positive operating leverage in 2025, improving efficiency and returns. These factors collectively underscore Zions’ strong growth potential in the medium term.