Dane Bowler
Value, hedge fund analyst, REITs, long/short equity

Farmland Partners: Maintaining A $16.25 Price Target (~50% Upside)

On June 28th I wrote a bullish article on Farmland Partners (NYSE:FPI) with a 2 year price target of $16.25. FPI has dropped from ~$12.50 at the time of publication to $10.78 (intraday 8/15).

(click to enlarge)

The market tells me that I was wrong. The fundamentals, however, tell me that I am right. Farmland Partners has become an even better opportunity than it was before with an extremely favorable reward to risk ratio.

The Fundamentals

In following FPI, I have run into three concerns of the market that seem to be quite prevalent:

    FPI has an extremely high amount of cash on the balance sheet which will drag down its FFO if not deployed quickly and efficiently....
Join Seeking Alpha PRO to read this archived article and 11,574 other archived articles
IDEA GENERATORXExclusive access to 10 PRO ideas every day
INVESTING IDEAS LIBRARYXExclusive access to PRO library of more than 15,000 ideas
SECTOR EXPERT NETWORKXExclusive access to all sector experts for direct consultation
PERFORMANCE TRACKINGXTrack performance of all PRO stock ideas
PROFESSIONAL TOOLSXProfessional Idea Filters to zero-in based on industry, market cap and more
"In just the first month of using PRO, I used it to generate two ideas which were actionable for me. As a result of these two positions, I have earned more than 20 times the annual subscription costs for PRO."Michael Yagemann, Greenbridge Capital
"I am pleasantly surprised with the scope of small and mid-cap coverage PRO offers. You can't find that any where else."Patrick Rice, Mainstay Capital Management
You may cancel at any time for any reason, and receive a prompt refund for membership on months paid and not used (max. 6 months). Details