Citi upgrades Valley National Bancorp, citing positive near-term outlook

Valley National Bancorp

15/09/2025 12:08

** Citi raises rating and price target on regional lender Valley National Bancorp VLY.N ahead of the U.S. Federal Reserve's policy meeting this week, when the central bank is expected to resume its interest rate cutting cycle

** VLY upgraded to "buy" from "neutral" as Citi expects VLY to outperform peers in a falling rate environment; Lifts PT to $13.5 from $10

** Brokerage finds significant upside opportunity in VLY being supported by a better outlook for lower deposit costs and a well-managed expense base

** "While a lower deposit cost should drive a stronger than peer NIM expansion trend over the next year, we believe VLY is also likely to focus on its already strong expense management trends throughout 2H25 and 2026" - Citi

** Six of the 12 analysts rate the stock buy or higher and six "hold"; their median PT is $11- LSEG data

** As of last close, VLY up 19.1% YTD

 (Reporting by Anuj T in Bengaluru)

 ((Anuj.T@thomsonreuters.com))