Morgan Stanley analyst Ken Zerbe downgraded New York Community to Underweight from Equal Weight after cutting his loan growth expectations citing the intensifying competition from non-bank lenders. Given competition, including from private equity debt funds, Zerbe thinks consensus expectations for the bank's loan growth are too optimistic, he tells investors. The analyst, who believes slowing and below-consensus loan growth, combined with ongoing NIM compression, are not being sufficiently discounted, has an $11.50 price target on New York Community Bancorp shares.