New York Community downgraded to Sector Perform from Outperform at RBC Capital

RBC Capital downgraded New York Community Bancorp to Sector Perform from Outperform with a price target of $7, down from $13. The bank’s Q4 results had several negative surprises, including a higher than expected provision and reserve build, a meaningfully lower margin and outlook, and a dividend cut announcement, the analyst tells investors in a research note. The analyst believes many of these trends are related to the company crossing the $100B asset mark and becoming a Category IV financial institution, which is driving increased liquidity and compliance needs.