Advanced Flower Capital Downgraded to Neutral by Alliance Global Partners.

Advanced Flower Capital (AFCG) has been downgraded from "Buy" to "Neutral" by Alliance Global Partners, with a price target of $4.50. This change comes after a previous downgrade from "Overweight" to "Neutral" by Zuanic & Associates. The average one-year price target for AFCG is $8.60, indicating a potential upside of 106.52%. The estimated GF Value for AFCG is $5.79, suggesting a 39.04% upside from the current price.

Advanced Flower Capital (AFCG) has experienced a significant change in its investment rating following a downgrade from "Buy" to "Neutral" by Alliance Global Partners. The new price target set by the firm is $4.50, a notable shift from the previous rating and price target. This move comes after a series of strategic changes and financial results reported by AFCG, which have influenced analysts' assessments of the company's prospects.

The most recent earnings report for the second quarter of 2025 revealed a GAAP net loss of $(13.2) million ($(0.60) per share) and Distributable Earnings of $3.4 million ($0.15 per share) [1]. Additionally, AFCG announced plans to convert from a mortgage REIT to a Business Development Company (BDC) and expand its investment mandate to include secured loans to cannabis-ancillary companies and middle market businesses outside the cannabis industry [1]. These strategic shifts are aimed at broadening the company's investment opportunities and leveraging its extensive direct lending experience.

Analysts at Alliance Global Partners cited AFCG's disciplined credit underwriting practices and portfolio performance within evolving cannabis markets as key factors driving the upgrade. The analysts also highlighted the strategic shifts, including the proposed BDC conversion and the expansion of its investment mandate, as positive developments that could broaden the company's investment opportunities and leverage its team's extensive direct lending experience [1].

However, investors should note that AFCG's stock price has been volatile in recent quarters, with a significant drop in the second quarter of 2025. The company's net loss and the impact of the realized loss from a loan to Public Company A on its dividend amount have contributed to the stock's underperformance [4]. Despite these challenges, AFAGP analysts believe that the company's strategic shifts and focus on real estate-backed transactions position it well for future growth.

The average one-year price target for AFCG is $8.60, indicating a potential upside of 106.52%. The estimated GF Value for AFCG is $5.79, suggesting a 39.04% upside from the current price [2]. These figures provide a context for investors to evaluate the potential for AFCG's stock to rebound.

References:
[1] https://www.stocktitan.net/news/AFCG/
[2] https://www.stocktitan.net/news/AFCG/
[4] https://www.stocktitan.net/news/AFCG/06/13/2025