UPDATE: Piper Jaffray Starts Valley National Bancorp (VLY) at Neutral

Piper Jaffray initiated coverage on Valley National Bancorp (NYSE: VLY) with a Neutral rating and a price target of $10.00.

Analyst Matthew Breese commented, "Overall, we believe shares of Valley National are fairly valued at current levels trading at 13.4x our 2016 estimates. In our view, while we believe the bank has an attractive 4.5% dividend yield, below average forward profitability metrics will likely prevent significant multiple expansion over the next 12 months. In 2015 and 2016, we estimate profitability as measured by return on assets will equal 0.76% and 0.86%, below peers at 0.96% and 1.01%, respectively. Positives in the near term will be the repricing of high cost borrowings coupled with solid levels of loan growth (7%-9% per year)."

For an analyst ratings summary and ratings history on Valley National Bancorp click here. For more ratings news on Valley National Bancorp click here.

Shares of Valley National Bancorp closed at $9.94 yesterday.

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