UPDATE: Guggenheim Reduces PT to $13.50 on New York Community Bancorp on EPS Risks

Guggenheim reiterates its Neutral rating on New York Community Bancorp

and reduces its price target from $13.50 to $13 on lower estimates. Guggenheim notes, "NYB's earnings contribution from prepayment penalties and mortgage banking have contributed $0.04-0.07 per share in each of the last five quarters; with the outlook weaker for both in late 2012, we are reducing our 2012E and 2013E EPS by $0.03 and $0.04 to $1.05 and $1.04. Mortgage banking likely will drive a positive 2Q12 earnings surprise for NYB; however, the Mortgage Bankers Association forecast reflects a material decline from 2Q12 into 4Q12, which we believe increases earnings risk." NYB closed at $12.09 on Tuesday.