UPDATE: ISI Group Initiates Coverage on New York Community Bancorp on Limited Near-Term EPS Growth, Solid Track Record

In a report published Tuesday, ISI Group analyst Keith Murray initiated coverage on New York Community Bancorp NYCB with a Neutral rating and $15.50 price target. In the report, ISI Group noted, “We are initiating coverage of NYCB with a Neutral rating and 12-month price target of $15.50. NYCB is the most unique bank in our coverage universe as it is focused on multi-family lending in the NY metro area (multi-family was 69% of the loan book in 2Q13). NYCB's track record is impressive and we see no reason why it won't continue over the long term. That said, we think near-term EPS growth will be limited as mortgage and prepay penalties may cool off and limit the benefit from loan growth (NYCB ended 2Q with a record pipeline). On a positive note, we think the bank will be able to maintain its $1 dividend in the near term which equates to a strong 6.5% yield.” New York Community Bancorp closed on Monday at $15.25.