Advanced Flower Capital price target lowered to $10 from $13 at Alliance Global Partners

Alliance Global Partners lowered the firm’s price target on Advanced Flower Capital (AFCG) to $10 from $13 and keeps a Buy rating on the shares. Advanced Flower’s Q4 net interest income and distributable EPS were below estimates, primarily due to lower than expected income from Justice Grown, that is taking legal action against its New Jersey CRO, with implications on Advacned Flower in the suit, giving uncertainty regarding income from one of its largest loans in the near-term, the analyst tells investors in a research note. While the issues with Justice Cannabis cause a step down as the borrower returns to being an issue, the firm believes this is now embedded in the stock.