Compass upgrades AFC Gamma to Neutral on CEO’s ‘blank slate’

Compass Point upgraded AFC Gamma to Neutral from Sell with a price target of $9, down from $10. The company had a large payoff in Q2 and subsequent to quarter end and spun off about a third of its equity and earning assets to a separate entity, the analyst tells investors in a research note. The firm believes AFC Gamma’s dividend run rate will be reduced from the 48c paid in Q2 prior to the spinoff to approximately 30c per share. However, Compass moves to the sidelines with a Neutral rating, “waiting to see what the new CEO can do with a relatively blank slate.”