Oct. 18 at 8:39 PM
$ZION That's at least the assumption going forward and the market has bought Morgan Stanley's (and other analysts') explanation that NDFI defaults wouldn't or shouldn't affect Zions anymore. At 4%, Zions's exposure is miniscule compared to peers (having said that, some of Zions's peers like Valley National
$VLY and UMB Financial
$UMBF are even lower at 0-1%). Remember, Zions was trading at
$54 before all this. It went all the way down to
$46.9 before returning to
$50 at Friday-end. That
$50 btw is equal to the FY2025E P/E multiple of 9.6x prevailing on Thursday adjusted for the 5% EPS decline (30c) from the collateral fraud committed by the California NDFIs. So we came back in a flash. And no, it shouldn't happen again.
