Peapack-Gladstone downgraded to Neutral at Piper amid expense headwinds

As previously reported, Piper Sandler downgraded Peapack-Gladstone to Neutral from Overweight with a price target of $27, down from $29. While the firm believes that Peapack-Gladstone has “an excellent franchise, a uniquely attractive wealth management business and is making the right long-term decision” in hiring to expand its New York operation, the firm also highlight two factors it thinks could weigh on the stock price a bit over the next 12 months. Namely, the firm notes that credit quality has softened recently and that it expects operating costs to rise by almost 20% in 2024, which it says will weigh on earnings given the lag in revenues following the NY expansion hiring.