Jefferies Upgrades Valley National Bancorp

Jefferies upgraded Valley National Bancorp - Preferred Stock (VLYPP) to Buy from Hold on September 24, 2025, establishing an average one-year price target of $27.13 per share, implying significant upside potential. This positive outlook is underpinned by projected annual revenue of $2,452MM, representing a 52.93% increase, and an anticipated non-GAAP EPS of $1.69. Institutional sentiment presents a mixed picture, with the number of funds holding VLYPP decreasing by 22.22% to seven and total institutional shares declining by 3.88% to 1.61 million, yet the average portfolio weight dedicated to VLYPP among remaining funds simultaneously increased by 9.54%.

Analysis

Valley National Bancorp's preferred stock (VLYPP) has received a significant catalyst with Jefferies upgrading its outlook from Hold to Buy. This bullish stance is supported by strong forward-looking fundamentals, including a projected annual revenue increase of 52.93% to $2,452MM and an estimated non-GAAP EPS of $1.69. The average one-year analyst price target of $27.13 further reinforces this positive sentiment. However, institutional ownership data presents a more nuanced and somewhat contradictory picture. While funds that remain invested have increased their average portfolio weight in VLYPP by 9.54%, indicating higher conviction, the overall number of institutional owners has decreased by 22.22% in the last quarter. Furthermore, total shares owned by institutions have declined by 3.88%, with major ETFs like iShares' PFF and Virtus' PFFA reducing their positions, suggesting some profit-taking or risk-off rotation among larger holders.

Key Decisions for Investors

• Investors should consider the Jefferies 'Buy' rating and strong fundamental projections, such as 52.93% revenue growth, as a primary bull case for the preferred stock.
• It is critical to weigh the positive analyst outlook against the recent divestment by several institutional funds, as the 3.88% decrease in total institutional shares may signal near-term headwinds or risk rotation.
• The divergence between declining ownership and increasing average portfolio weight suggests a consolidation of conviction; investors may find an opportunity by aligning with the smaller base of funds that are concentrating their positions in VLYPP.