KBW starts Federal Agricultural at Outperform on ‘unique position’

Keefe Bruyette initiated coverage of Federal Agricultural Mortgage with an Outperform rating and $220 price target, which suggests 29% of potential upside. Farmer Mac remains well positioned to continue generating mid-to-high-teens return on equity and solid growth rates, the analyst tells investors in a research note. The firm says the company has a “unique position” in the market as the only government-sponsored enterprises creating a secondary market for agricultural loans.