(Updated to include the analyst's commentary).
Raymond James upgraded New York Community Bancorp (NYCB) to market perform from underperform, citing a "more favorable interest rate environment."
The recent decline in the 5-year Treasury yield improved the credit outlook, and anticipated Federal Reserve rate cuts in 2025 are expected to support net interest margin expansion.
After discussions with the company's management, the brokerage gained confidence in the bank's prudent efforts to strengthen infrastructure and address problem credits.
According to the brokerage, sustained lower interest rates could help reduce the formation of problematic credits, facilitate the repayment of substandard loans, and allow the bank to focus on franchise-enhancing investments.
However, the brokerage still believes the turnaround process will be prolonged, noting that the stock remains highly sensitive to rate changes.
New York Community Bancorp has an average hold rating and a price target range of $10 to $14, according to analysts polled by Capital IQ.
(MT Newswires covers equity, commodity and economic research from major banks and research firms in North America, Asia and Europe. Research providers may contact us here: https://www.mtnewswires.com/contact-us)
Price: 12.09, Change: +0.67, Percent Change: +5.87
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.