Analyst Mark Fitzgibbon, from Piper Sandler, highlighted two primary factors that could potentially impact the company’s performance in the coming quarters. Firstly, he expressed concerns about the softening credit quality within the banking industry, particularly as interest rates continue to rise. This could lead to an increase in nonperforming loans, which could negatively affect the company’s financial results. Secondly, Fitzgibbon pointed out that Peapack-Gladstone Financial recently hired 10 teams in New York in an effort to drive low-cost deposit growth. However, he anticipates that this move will result in a significant increase in operating costs, potentially weighing down the company’s earnings. Fitzgibbon’s Neutral rating contrasts with the Sell rating assigned by Seeking Alpha’s Quant system and the Strong Buy rating given by the average Wall Street analyst. Despite the recent downgrade and concerns raised by Piper Sandler, Peapack-Gladstone Financial remains an organization worth monitoring. The company’s focus on wealth management, particularly among smaller banks, as well as its historical earnings performance and dividend track record, are important factors to consider when evaluating its long-term prospects.
Peapack-Gladstone Financial Stock Plunges 7.8% as Piper Sandler Downgrades to Neutral
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