Amalgamated Financial falls after Piper Sandler cuts to 'neutral'

Amalgamated Financial

21/02/2025 12:09

** Shares of Amalgamated Financial  AMAL.O , a lender
popular among Democrats, fall 4.3% to $33.78 premarket
    ** Piper Sandler downgrades AMAL to "neutral" from
"overweight"; cuts PT to $38 from $42, which is still a 7.7%
upside to stock's last close
    ** Brokerage says it is somewhat concerned about the
implications of the so-called green freeze on AMAL given its
oversized exposure to climate-related loans
    ** Trump administration recently announced plans to freeze
funding for environment and climate change initiatives, with
attempts to even claw back previously issued grants    
    ** Piper Sandler says that while there is no way of knowing
how this will ultimately play out, it thinks AMAL shares should
trade at a discount to reflect some uncertainty
    ** Brokerage also wonders if the Trump administration could
prompt its newly appointed banking regulators to "more intensely
scrutinize the institution that banks their competitors"
    ** One of two brokerages rate the stock "buy" and one
"hold"; their median PT is $41.50, according to data compiled by
LSEG
    ** AMAL stock up 5.4% YTD

 (Reporting by Arasu Kannagi Basil in Bengaluru)
 ((ArasuKannagi.Basil@thomsonreuters.com;))