After more than a decade, New York Community Bancorp has finally won over JPMorgan analysts.
(Bloomberg) — After more than a decade, New York Community Bancorp has finally won over JPMorgan analysts.
This year the regional bank scooped up the failed Signature Bank’s deposits and lured six private banking teams formerly with First Republic Bank. The moves make New York Community Bancorp “a regional banking powerhouse in the making,” said analyst Steven Alexopoulos in a note, adding “it’s very likely that NYCB becomes a talent magnet.”
On Friday, Alexopoulos upgraded the stock to overweight from neutral, his first bullish rating on the stock since JPMorgan started covering the bank in 2010. The stock’s roughly 59% rally has made it the best performer in the KBW Regional Banking Index this year. It gained 5% Friday. Shares offer a “very attractive” risk-reward opportunity for investors, according to the analyst.
“We see New York Community emerging as a potential massive market share taker over the next several years,” Alexopoulos wrote in the note.
The bank reported earnings Thursday that were stronger than analysts expected, with the results capturing a full quarter of benefit from the Signature transaction.
Read More: New York Community Rises as Earnings, Deposits Top Estimates
Alexopoulos, who had an underweight rating for about one-third of the time he covered the bank, is hardly the only bull. More than a dozen firms on Wall Street have buy-equivalent ratings, according to data compiled by Bloomberg. Only four have hold recommendations, and none say to sell.
He’s not the only stock-watcher lifting his expectations for the firm after earnings. Raymond James’ Steve Moss, who holds a strong buy recommendation, hoisted his price target to $17, the highest among analysts tracked by Bloomberg.
“Management is clearly committed to enhancing the deposit franchise and has a number of tools at its disposal to execute that did not exist late last year,” Moss wrote in a note.
–With assistance from Henry Ren.
(Updates shares throughout to market close.)
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