Peapack-Gladstone initiated with a Strong Buy at Raymond James

Raymond James initiated coverage of Peapack-Gladstone (PGC) with a Strong Buy rating and $39 price target The firm says management has transformed the bank’s deposit base in order to improve profitability and enhance franchise value, which is not reflected in its franchise value. While asset quality has slipped in recent years, loss content has remained minimal, a trend that will persist given the dynamics of Peapack-Gladstone’s multifamily loan portfolio, which bodes well for the outlook, the analyst tells investors in a research note. Raymond James expects “meaningful improvement in the stock valuation over time” given its expectations for a positive earnings trajectory outlook and stronger core deposit franchise.