NECB - Northeast Community Bancorp stock dips after Piper downgrades to Neutral

2023-05-08 10:43:57 ET

• NorthEast Community Bancorp ( NASDAQ: NECB ) stock slid 2.6% in Monday morning trading after Piper Sandler analyst Justin Crowley downgraded the bank's rating to Neutral from Overweight.
• The company's Q1 earnings beat (Piper is the only firm with an earnings estimate for NECB), was almost all on net interest income due to a more stable net interest margin (NIM), he said. Also, a lower-than-expected provision for credit losses contributed $0.03 to the $0.15 per share earnings beat.
• "Margins are under pressure industry-wide, and we anticipate that a catch-up in funding costs along with loan yields that have likely topped out (regardless of future FOMC activity) leads to net interest margin compression from here at NECB," Crowley wrote in a note to clients.
• Cowley's Neutral rating aligns with the SA Quant rating of Hold
• Compare Northeast Community Bancorp ( NECB ) with its peers on the Key Stats Comparison

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