Valley National Bancorp (VLY – Research Report), the Financial sector company, was revisited by a Wall Street analyst today. Analyst David Chiaverini from Wedbush remains neutral on the stock and has a $11.00 price target.
David Chiaverini has given his Hold rating due to a combination of factors that affected Valley National Bancorp’s recent performance and expectations for the future. The quarter was marked by pressure on the net interest margin (NIM) and a higher than anticipated expense outlook, with core pre-provision net revenue (PPNR) falling below both the firm’s and consensus estimates. Additionally, the NIM decrease was more significant than expected due to aggressive deposit pricing aimed at customer retention during a systems conversion, hinting at potential missteps in the bank’s pricing strategy.
Chiaverini’s outlook on Valley National Bancorp also factors in the management guidance which suggests a trough in NIM for the first quarter of 2024, with expansion anticipated in the second half of the year as deposit costs are expected to reprice lower. While the bank’s asset sensitivity remains relatively neutral, there is uncertainty surrounding the impact of potential Federal Reserve rate cuts on net interest income. Furthermore, weaker credit quality indicators such as increased net charge-offs and non-performing assets add to the concerns. Despite these challenges, the Hold rating reflects the analyst’s view that the company’s growth prospects and solid loan pipeline post-Leumi transaction are already accounted for in the current valuation.
See Insiders’ Hot Stocks on TipRanks >>
TipRanks tracks over 100,000 company insiders, identifying the select few who excel in timing their transactions. By upgrading to TipRanks Premium, you will gain access to this exclusive data and discover crucial insights to guide your investment decisions. Begin your TipRanks Premium journey today.
Valley National Bancorp (VLY) Company Description:
Valley National Bancorp is a bank holding company, which engages in the provision of retail and commercial banking services. It operates through the following segments: Consumer Lending; Commercial Lending; Investment Management; and Corporate and other adjustments. The Consumer Lending segment consists of residential mortgage loans, automobile loans and home equity loans, as well as wealth management services including trust, asset management, insurance services, and asset-based lending support. The Commercial Lending segment refers to the floating rate and adjustable rate commercial and industrial loans as well as fixed rate owner occupied and commercial real estate loans. The Investment Management segment is the investments in various types of securities and interest-bearing deposits with other banks which focus on fixed rate securities, federal funds sold and interest-bearing deposits with banks. The Corporate and Other Adjustments segment relates to income and expense items not directly attributable to a specific segment. The company was founded in 1983 and is headquartered in Wayne, NJ.
Read More on VLY:
- Valley National Bancorp Offers Non-Commital Presentation Materials
- Valley National Bancorp Reports Fourth Quarter 2023 Results
- VLY Upcoming Earnings Report: What to Expect?
- Valley National Bancorp to Announce Fourth Quarter 2023 Earnings
- Valley National price target raised to $12.50 from $12 at JPMorgan
