New York Community Bancorp downgraded to Hold from Buy at Deutsche Bank

Deutsche Bank analyst Bernard von-Gizycki downgraded New York Community Bancorp to Hold from Buy with a price target of $7, down from $15. The shares are down 45% since the bank reported “very disappointing” Q4 earnings which included a meaningful increase in credit provision and a step down in the net interest margin outlook, the analyst tells investors in a research note. The downgrade is a “tough call given the sharp sell-off and low valuation,” but there is also a lot of uncertainty surrounding New York Community’s credit quality and net interest income and resulting earnings, says the firm.