Morgan Stanley Upgrades Valley National Bancorp (VLY) to Overweight

Morgan Stanley analyst Manan Gosalia upgraded Valley National Bancorp (NASDAQ: VLY) from Equalweight to Overweight with a price target of $11.00 (from $10.00).

The analyst comments: "Valley has taken significant actions over the past 12 months to strengthen its balance sheet, reduce its concentration in commercial real estate, increase its reserve ratio, and build capital. The bank has also successfully driven down its deposit costs to improve net interest margin, with significant runway from here when rates come down further. These tailwinds are not reflected in the multiple, with the shares trading at a 2x discount to peers, their largest discount in nearly a year. We also have higher conviction in our $1.14 EPS for 2026, driving our upgrade to Overweight from Equal-weight. Our $11 price target applies a 10x target P/E multiple, implying 18% upside for the shares."

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 $9.34 yesterday.

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