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Investing.com - Keefe, Bruyette & Woods reduced its price target on Peapack-Gladstone Financial (NASDAQ:PGC) to $35.00 from $38.00 on Wednesday, while maintaining an Outperform rating on the stock.
The price target adjustment follows a significant 8.70% drop in PGC shares after the company reported earnings that fell short of expectations. The earnings miss was attributed to increased expenses related to the company’s expansion in the New York City metropolitan market and higher provision expenses.
Despite reporting no net charge-offs in the quarter, Peapack-Gladstone saw non-performing assets increase by 18% quarter-over-quarter, reaching 1.60% of total assets. The increase stemmed from commercial and industrial loans, leasing exposure, and multifamily loans.
Keefe, Bruyette & Woods indicated that asset quality concerns would likely weigh on the stock in the near term, impacting their estimates. However, the firm maintained that its revenue expectations for Peapack-Gladstone remain on track.
The research firm forecasts a 0.95% return on assets for Peapack-Gladstone by the fourth quarter of 2026. With the stock currently trading at 82% of tangible book value, Keefe, Bruyette & Woods reiterated its Outperform rating despite the price target reduction.
In other recent news, Peapack-Gladstone Financial Corporation has made significant leadership appointments. The company named A. Michael Smith as Senior Vice President and Chief Audit Executive. Smith brings over 30 years of experience in auditing, risk management, and technology, having previously served as Chief Audit Executive at Nasdaq and as a Partner at PwC. In his new role, he will oversee the internal audit function and lead strategic initiatives to drive the bank’s growth. Additionally, Peapack-Gladstone appointed Assimina Mina Nikiforos as Senior Managing Director in its Commercial Banking division. Nikiforos joins from Flagstar Bank, where she was vice president and group director, and will be based in the company’s new office in Garden City, New York. Her experience spans over two decades in the financial services sector, including roles focused on customer service and regulatory compliance. These leadership changes reflect Peapack-Gladstone’s ongoing efforts to strengthen its management team and expand its operations.
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