New York Community Bancorp (NYSE:NYCB) may finally be reaping the rewards of months of restructuring efforts.
After a turbulent year, the bank's shares surged as much as 9% on Thursday following an upgrade from Barclays, which raised its rating to "overweight" from "equal-weight" and increased its price target to $14, marking a potential upside of 31%.
"The bank has completed the heavy lifting around credit evaluation, capital growth, and balance sheet repositioning," said Barclays analyst Jared Shaw.
While Shaw acknowledged ongoing challenges, he emphasized that the bank's risk/reward profile is now favorable, as it positions itself for a stronger future.
Shaw’s optimism stands out among his peers.
Of the 16 analysts, 13 maintain a hold rating, with only three, including Barclays, holding a buy-equivalent recommendation.
This latest development comes on the heels of significant leadership changes at the lender.
Earlier this year, Joseph Otting, former comptroller of the currency, was appointed CEO in March, replacing Alessandro DiNello.
Despite these efforts, NYCB's share price remains down about 65% for the year, following a steep January drop driven by concerns over real estate risks.