KBW downgrades Valley National Bancorp to 'market perform', cuts PT

Valley National Bancorp

31/05/2024 11:39

** KBW downgrades regional lender Valley National Bancorp
 VLY.O  to "market perform" from "outperform"; cuts PT to $8
from $12, which still represents a 15.1% upside to the last
close
    ** Brokerage says there is no easy fix to VLY's balance
sheet and that material progress will take significant time
    ** VLY stock is cheap but balance sheet drives valuations
for banks with $50 bln to $100 bln assets - KBW
    ** Regional banks with exposure to the beleaguered
commercial real estate sector have come under investor scrutiny
after New York Community Bancorp's  NYCB.N  recent turmoil
    ** KBW says VLY faces an uphill battle that is likely to
continue to weigh on valuation
    ** Four of 12 brokerages rate the stock "buy" or higher, six
"hold" and two "sell"; their median PT is $9 - LSEG
    ** As of last close, VLY shares down 36% YTD

 (Reporting by Arasu Kannagi Basil in Bengaluru)
 ((ArasuKannagi.Basil@thomsonreuters.com;))