** Piper Sandler upgrades commercial bank Peapack-Gladstone Financial to "overweight" from "neutral"; raises PT to $35 from $30, a 12.2% upside to stock's last close

** Brokerage says it now feels confident that PGC's New York expansion is bearing fruit in the form of low-cost deposits and expects the unit to reach profitability very soon

** Since last year, PGC has been expanding into New York City, hiring a handful of commercial and private bankers from rivals

** PGC expects its New York expansion to boost its earnings in early 2025

** PGC has sufficiently built reserves and proactively addressed credit challenges, brokerage says, adding that the company has turned the corner on credit

** All three brokerages that cover the stock rate it "buy" or higher; median PT is $35 - LSEG

** As of last close, PGC shares up 4.6% YTD

(Reporting by Arasu Kannagi Basil in Bengaluru)

((ArasuKannagi.Basil@thomsonreuters.com;))