© Reuters.
On Tuesday, Jefferies reaffirmed its Hold rating and $3.50 stock price target for New York Community Bancorp (NYSE: NYSE:). Following the bank’s recent $1 billion capital raise, the firm recognized the improved capital levels and the management team’s experience in reviving challenged banks.
Despite these positives, Jefferies pointed out the difficulties in forecasting the bank’s earnings per share due to uncertainties surrounding credit losses and the evolving business model.
The analyst’s updated model anticipates a mid-single-digit return on tangible common equity (ROTCE) by 2025. This projection is based on the bank’s current valuation, which stands at 0.5 times its pro forma tangible book value per share (TBVPS). According to Jefferies, this valuation is considered fair when taking into account the bank’s financial outlook and market position.
New York Community Bancorp (NASDAQ:)’s recent capital infusion…
