UPDATE: Keefe, Bruyette & Woods Upgrades Valley National Bancorp on Raised 2015 EPS Estimate

In a report published Wednesday, Keefe, Bruyette & Woods analyst Collyn Gilbert upgraded the rating on Valley National Bancorp (NYSE: VLY) from Underperform to Market Perform, and raised the price target from $8.50 to $9.50.

In the report, Keefe, Bruyette & Woods noted, “Following Valley's 4Q13 earnings release and a recent 8-K filing that highlighted Valley's funding repricing schedule, we are raising our 2015 EPS estimate to $0.63 from $0.59, and we are also raising our target price to $9.50 from $8.50. The increase in our target price suggests a 7% negative return, which now supports a Market Perform rating, versus our previous Underperform rating. We believe the challenges that face Valley will likely keep its shares in a narrow range, leaving its 4.3% dividend yield as the primary driver of investor return.”

Valley National Bancorp closed on Tuesday at $10.24.