JPMorgan sees ‘murky path ahead’ for New York Community Bancorp

JPMorgan analyst Steven Alexopoulos sees a “murky path ahead” for New York Community Bancorp and withdrew the firm’s $5.50 price target while keeping a Neutral rating on the shares. The firm believes “the door will remain open” in terms of the company potentially needing additional capital until it “can confidently come to markets with a reserve amount required to more fully address risk in the loan portfolio.” However, should last week’s capital raise prove to be the last capital action and only a modest incremental reserve build was required, “this could potentially present a favorable buying opportunity,” the analyst tells investors in a research note.