AFC Gamma (AFCG – Research Report), the Real Estate sector company, was revisited by a Wall Street analyst today. Analyst Michael Elias from TD Cowen maintained a Buy rating on the stock and has a $10.00 price target.
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Michael Elias has given his Buy rating due to a combination of factors surrounding AFC Gamma’s strategic position in the cannabis lending market. Despite the challenges posed by federal regulatory uncertainties and a supply-demand imbalance for capital, AFC Gamma is well-positioned as a pure-play cannabis lender. This unique positioning allows the company to capitalize on the persistent capital needs of cannabis operators, especially in a market where many lenders remain hesitant.
Furthermore, management’s selective approach in sourcing deals with operators who have a proven track record is seen as a prudent strategy. While there are ongoing legal proceedings with Justice Grown, the company’s focus on efficient receivership and its experience in the industry are viewed positively. These elements contribute to the belief that AFC Gamma can secure incremental market opportunities, justifying the Buy rating despite the current market headwinds.