New York Community Bank Stock (NYSE:NYCB) Still Looks Cheap Despite 50%+ Surge – TipRanks Financial Blog

Many bank stocks plunged following the collapse of Silicon Valley Bank (SVB). However, New York Community Bank (NYSE:NYCB) stock has surged recently, making it a notable exception in the sector. In fact, shares of the New York-based bank have bounced more than 50% off of the 52-week low that it hit in the immediate aftermath of the crisis. In this article, I’ll explain why the stock surged and why I believe it’s not too late to buy shares of the $6.1 billion bank even after this massive run.

The Signature Bank Move

New York Community Bank stock soared more than 40% intraday on Monday, March 20th, when news broke that its Flagstar Bank subsidiary had agreed to buy the deposits and some of the loan book of Signature Bank. Signature Bank, also based in New York, was shut down by regulators in the wake of the regional banking crisis spurred by SVB. NYCB reportedly acquired $12.9 billion worth of loans at a $2.7 billion discount, and sell-side analysts widely hailed the deal as a favorable one for NYCB. 

Analysts Love the Deal; NYCB Rated a “Strong Buy” 

Wedbush upgraded NYCB to Outperform, with a price target of $11. Analyst David Chiaverini wrote that NYCB was benefiting from “a sweetheart deal as [the] FDIC priced assets to move quickly.” Meanwhile, D.A. Davidson upgraded NYCB to a Buy rating based on the deal, although it maintained its $11.50 price target. Analysts from Piper Sandler and RBC Capital Markets also have Buy-equivalent ratings on the stock. 

Below, we can see that the analyst community is very optimistic about NYCB. The stock has a consensus Strong Buy rating based on 11 Buys and three Holds assigned in the past three months. Additionally, the average NYCB stock price target of $10.96 implies upside potential of 24% versus current levels.

Additionally, NYCB boasts a ‘Perfect 10’ Smart Score rating on TipRanks, suggesting strong potential for the stock to outperform the market from here. The Smart Score is TipRank’s proprietary quantitative stock scoring system that evaluates stocks on eight different market factors. The score is data-driven and does not involve any human intervention. 

NYCB also screens well based on a number of other criteria that TipRanks monitors, such as blogger sentiment and hedge fund involvement. Furthermore, insiders have been buying shares over the past three months.

NYCB Stock is Still Cheap 

So, analysts love NYCB’s Signature Bank deal, and they…