Valley National shares to recover in coming days, says Keefe Bruyette

Keefe Bruyette says Valley National Bancorp (VLY) shares came under pressure Wednesday on negative read-across from weaker credit results from New York Community Bancorp (NYCB). However, Valley released new credit disclosures in its Q4 earnings slides that show the read-across is “not that significant” as the bank has immaterial rent-controlled and office New York City exposure, the analyst tells investors in a research note. Keefe would be buying Valley National shares on weakness and expects the stock to recover over the coming days. It keeps an Outperform rating on the name with a $12 price target