Valley National Bancorp
VLY,
stock was down 1.5% in premarket trades on Tuesday after the financial company’s second-quarter profit and revenue fell short of estimates, and Hovde Group analysts downgraded the stock to market perform from outperform, while hiking its price target by $1 to $11 a share. Hovde Group analysts said challenges remain for the company even as it targets $40 million in in cost savings initiatives. “While we do not believe the shares to be overvalued by any stretch, given the limited prospects for net interest income growth in the near term and need to curtail expenses we believe relative out-performance to peers is unlikely,” Hovde analyst David Bishop said. On Thursday, Valley National reported a second-quarter profit of 28 cents a share, a penny short of analyst estimates, according to FactSet data. Its revenue of $479.8 million missed the estimate of $493.7 million.
