FBR Capital Reiterates an 'Outperform' on New York Community (NYB); Earnings Disappoint, but Massive Pipeline Holds Promise

FBR Capital reiterates an 'Outperform' on New York Community Bancorp (NYSE: NYB), lowers PT from $20 to $19.

FBR analyst says, "We reiterate our rating on NYB, but reduce our 2011 operating EPS estimate to $1.15 (from $1.35) and our 2012 operating EPS estimate to $1.35 (from $1.55) to reflect weaker mortgage banking and lower net interest income. We also reduce our price target to $19, equal to 14.1x our revised 2012 EPS estimate and 2.7x estimated 4Q11 tangible book. In 1Q11, credit costs, mortgage banking, and earning asset growth all disappointed, but a massive pipeline of loans held for investment was the quarter's redeeming feature. NYB's pipeline of loans held for investment (HFI) grew to $2.4 billion, more than double the prior quarter, and the strongest level since at least 2004."

For more ratings news on New York Community Bancorp click here and for the rating history of New York Community Bancorp click here.

Shares of New York Community Bancorp closed at $16.28 yesterday.

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