** 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;))