New York Community Bancorp price target lowered to $4 from $6 at Morgan Stanley

Morgan Stanley analyst Manan Gosalia lowered the firm’s price target on New York Community Bancorp to $4 from $6 and keeps an Equal Weight rating on the shares. While the $1.05B equity raise “fortifies” the bank’s capital to help manage further pressure on commercial real estate, several risks around office and multifamily losses, potential loan sales, and funding costs remain, the analyst tells investors in a research note. The firm stills see a “broad range of potential outcomes” for NYCB. Morgan Stanley assumes New York Community’s low cost deposit runoff accelerated over the past month since Wednesday’s announcement did not include a deposit update. It estimates significant dilution from the equity deal, which brought down the price target.