UPDATE: Morgan Stanley Upgrades Valley National Bancorp to Equal-Weight: Bear Case Over
Morgan Stanley raised its rating on Valley National Bancorp (NYSE: VLY) from Underweight to Equal-weight with a reiterated $11 price target.
Morgan Stanley commented, "We were concerned that VLY's lofty valuation was at risk given the potential for NIM compression in its resi mortgage-focused loan portfolio. After posting a highly disappointing quarter on severe NIM compression (down 18 bps Q/Q versus a median decline of 5 bps for peers), and the stock having underperformed by 1,084 bps since its earnings date, we believe the market is now pricing in more of the bear case we were concerned about, suggesting further downside is limited."
Valley National Bancorp closed at $9.39 on Monday.
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