New York Community Bancorp initiated with a Neutral at Citi

Citi initiated coverage of New York Community Bancorp with a Neutral rating and $12 price target. The firm also opened a “negative catalyst watch” on the shares. It expects a Q3 net interest income miss on a smaller balance sheet and negative earnings revisions to 2024 from smaller balance sheet and higher expenses. Citi says that while the bank is well positioned after “very attractive” acquisitions, it sees better opportunity in peers, which is reflective of the firm’s view that the regional banks look attractive here and that investors “should be playing offense, not defense.”