UPDATE: Jefferies Reiterates Hold Rating, Lowers PT on Astoria Financial Corp.

In a report published Friday, Jefferies reiterated its Hold rating on Astoria Financial Corp.

, but slightly lowered its price target from $10.00 to $9.00. Jefferies noted, “We cut estimates to $0.40/$0.40 from $0.60/$0.55 for 2013/2014, respectively, to account for a smaller-than-expected balance sheet and the new business banking expansion initiative, which will drive expenses higher. At 0.9x tangible book, valuation metrics look vulnerable given a 3.5% tangible ROE profile, but downside is limited as market assigns some value to ROE expansion under a balance sheet restructuring.” Astoria Financial Corp. closed on Thursday at $9.74.