New York Community Bancorp (NYCB) PT Lowered to $5 at Deutsche Bank, 'we have two main takeaways'

Deutsche Bank analyst Bernard Von Gizycki lowered the price target on New York Community Bancorp (NYSE: NYCB) to $5.00 (from $7.00) while maintaining a Hold rating.

The analyst comments "Given the announcements following 4Q results, we have two main takeaways: First on NYCB, it likely will have a long road to recovery as it builds capital, liquidity and its risk mgmt/internal controls infrastructure. On this last point, mgmt has flagged "material weaknesses" in internal controls including "ineffective oversight" following the exits of both the Chief Risk Officer and Chief Audit Officer. We will find out more details and the extent of deficiencies in the eventual filing of the 2023 10K (likely by mid March). Second, post NYCB's 4Q results highlighting credit concerns in cre office and refi risk from higher rates in multi-family, there has been pressure on regional bank stocks as the KRE has declined 8% vs. the BKX has declined just 1% while the broader market is up 3.5%. While many of these issues are known and mostly manageable for the broader banking sector, the new regulatory and Category IV bank issues are specific to NYCB which shouldn't be considered a read through for the broader bank sector."

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