Advanced Flower Alliance Global Partners Downgrades Neutral to Buy with PT $4.5

Advanced Flower Alliance Global Partners Downgrades Neutral to Buy with PT $4.5

Advanced Flower Alliance Global Partners (AFAGP) has upgraded its rating on Advanced Flower Capital (AFCG) from Neutral to Buy, with a price target of $4.50. The upgrade comes on the heels of the company's second-quarter earnings report, which 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]. The company also 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].

AFAGP analysts cited the company's disciplined credit underwriting practices and portfolio performance within evolving cannabis markets as key factors driving the upgrade. The analysts also highlighted AFCG's 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].

The upgrade follows a series of strategic moves by AFCG, including the expansion of its senior secured revolving credit facility by $20 million to reach $50 million total, and the successful renewal of its senior secured revolving credit facility with a leading commitment from an FDIC-insured bank [2, 3]. These moves demonstrate AFCG's commitment to strengthening its lending platform and financing strategy in the cannabis sector.

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]. However, AFAGP analysts believe that the company's strategic shifts and focus on real estate-backed transactions position it well for future growth.

References:

[1] https://www.stocktitan.net/news/AFCG/
[2] https://www.stocktitan.net/news/AFCG/05/14/2025
[3] https://www.stocktitan.net/news/AFCG/04/15/2025
[4] https://www.stocktitan.net/news/AFCG/06/13/2025