Sam Boughedda | Investing.com
Published on 07/29/2023 19:19
Investing.com – JPMorgan (NYSE:JPM) has upgraded shares of New York Community Bancorp (NYSE:NYCB) to overweight from neutral and raised its price target to $16 from $13.
Analyst Steven Alexopoulos explained in a customer announcement on Friday that the share has a “very attractive risk/reward ratio” due to the use of 127 banking teams at NYCB and a noticeable new dynamic.
“Q2 2023 core earnings per share of $0.47 exceeded both our guidance (of $0.32) and consensus (of $0.31), with the increase primarily due to higher than expected earnings,” wrote the analyst.
With the influence of the recently added Signature teams, the earnings potential of the combined company can now be better appreciated. As a result, JPMorgan has revised its 2023-2024 EPS guidance significantly upwards, in the range of 15-20%.
Along with prospects for solid growth, the analyst highlighted that NYCB now has a total of 127 private banking teams in 10 cities across New York City and the West Coast. This underscores the significant growth prospects for the bank.
Additionally, JPMorgan sees an opportunity for NYCB to streamline its funding structure by replacing expensive funding with low-cost core deposit growth.
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Written by Investing.com
2023-07-29 17:19:00
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