** Raymond James upgrades its rating on New York Community Bancorp to "market perform" from "underperform"

** Brokerage says while challenges remain for NYCB, lower rates support a more favorable credit outlook for bank

** Likelihood of Fed rate cuts should support net interest margin $(NIM)$ expansion in 2025 - Raymond James

** NYCB has been under immense pressure since a surprise loss and dividend cut in January

** Brokerage continues to believe a turnaround will take an extended period and profitability is likely to be difficult for the next several years given aggressive underwriting standards

** NYCB's stock is highly sensitive to changes in rates - Raymond James

** Two of 16 brokerages rate the stock "buy" or higher, 13 "hold" and one "sell"; their median PT is $12 - LSEG

** As of last close, NYCB shares were down 62.8% YTD

(Reporting by Arasu Kannagi Basil in Bengaluru)

((ArasuKannagi.Basil@thomsonreuters.com;))