Valley National price target lowered to $9 from $13 at Morgan Stanley

Morgan Stanley analyst Manan Gosalia lowered the firm’s price target on Valley National to $9 from $13 and keeps an Equal Weight rating on the shares. Given the lack of real-time data on individual bank deposit trends, uncertainty for the mid-cap banks is high, but "one thing is clear: Street estimates need to move down meaningfully," the analyst tells investors in a preview note for the group. The firm, which has cut 2023 and 2024 EPS estimates in its mid-cap bank coverage by 17% and 27%, respectively, adds that it favors banks with "funding flexibility."