Piper Sandler upgrades Capital City Bank Group to 'overweight'

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Piper Sandler analyst Stephen Scouten upgraded Tallahassee, Fla.-based Capital City Bank Group Inc. to "overweight" from "neutral" and raised his price target to $31.50 from $29.

The analyst said Capital City Bank's shares are "more attractive than they have ever been" during his coverage of the company.

Scouten raised his 2022 and 2023 EPS estimates to $2.32 and $3.00 from $1.63 and $2.32, respectively. The increases come on additional rate raises, a larger average earning assets base that lifts net interest income and an improved loan growth outlook due to new hires, according to the analyst. Additionally, the company's expenses are "better than previously expected on the benefits from higher rates on pension expense," Scouten said.

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Raymond James analyst David Long downgraded his investment rating on Zions Bancorp. NA to "market perform" from "strong buy," saying he does not see a specific positive catalyst that will fuel the Salt Lake City-based company's shares to outperform.

"Despite being asset sensitive, we reduced our net interest income forecast, as [the company's] asset sensitivity has lessened and we expect a smaller balance sheet," the analyst said.

Zions' capital levels also no longer allow for material share buybacks; noninterest income is under pressure because of lower deposit fees; and operating expenses are anticipated to be more negatively affected by inflation and higher rates than previously expected, Long said. Also, Zions has little room for additional reserve releases, the analyst noted.

Long lowered his non-GAAP 2022 EPS estimate to $4.93 from $5.20 and his 2023 estimate to $5.36 from $5.78.