Valley National price target lowered to $12 from $12.50 at Stephens

Stephens lowered the firm’s price target on Valley National to $12 from $12.50 and keeps an Overweight rating on the shares. The company’s Q4 results came in below expectations, which was driven by lower-than-anticipated spread income on a “disappointing” net interest margin, higher-than-anticipated expenses, and lower fee income, the analyst tells investors. While 2024 appears to have some positive elements, the firm’s EPS estimates fell 10% with a stronger 2025 outlook. Stephens, however, continues to believe Valley National’s balance sheet is well prepared both in terms of impacts from lower interest rates and from a credit standpoint.