Valley National downgraded to Underweight from Equal Weight at Morgan Stanley

Morgan Stanley analyst Manan Gosalia downgraded Valley National to Underweight from Equal Weight with a price target of $8.50, up from $8. The analyst thinks consensus estimates are underestimating the pressure on Valley’s net interest income in a higher for longer rate environment. Valley has a 101% loan-to-deposit ratio, which gives it less flexibility on deposit pricing in a higher for longer rate environment, the analyst tells investors in a research note.