Jefferies analyst David Chiaverini upgraded the rating on Valley National Bancorp to a Buy today, setting a price target of $14.00.
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David Chiaverini has given his Buy rating due to a combination of factors that indicate Valley National Bancorp is on a promising path towards enhanced profitability. The bank is expected to achieve a 15% return on tangible common equity (ROTCE) by mid-2028, driven by improvements in net interest margin (NIM), credit costs, expense management, and loan growth. This anticipated ROTCE should help close the valuation gap with its peers.
Valley’s net interest margin has been expanding for five consecutive quarters, and this trend is projected to continue, supported by asset and deposit repricing. Additionally, improvements in credit quality and expense control are expected to boost profitability. The bank’s efficiency ratio is also predicted to improve as revenue grows, contributing to positive operating leverage. With these factors in mind, Chiaverini believes Valley National Bancorp is well-positioned for growth, justifying the Buy rating.
According to TipRanks, Chiaverini is an analyst with an average return of -2.5% and a 47.64% success rate. Chiaverini covers the Financial sector, focusing on stocks such as Huntington Bancshares, Bok Financial, and Comerica.
In another report released on September 16, Citi also upgraded the stock to a Buy with a $13.50 price target.