B.Riley FBR Believes Consolidated-Tomoka Land Co (NYSE MKT: CTO) Won’t Stop Here

By Ryan Adsit

B.Riley FBR analyst David Corak reiterated a Buy rating on Consolidated-Tomoka Land Co (NYSE MKT: CTO) today and set a price target of $80. The company’s shares closed on Friday at $60.16, close to its 52-week high of $61.70.

Corak wrote:

“In light of the company’s recent announcement that it has undertaken the first step in exploring a potential REIT conversion (the earnings and profitability study), we have undertaken some updated work on what the company could look like as a REIT. We believe the REIT conversion is achievable and in the best interest of shareholders. We think this is the best option for the company to close the valuation gap between the current stock price and NAV. Below, we outline the hypothetical valuation and upside potential, as well as other considerations related to a REIT conversion. We reiterate our Buy rating and our $80 price target.”

According to TipRanks.com, Corak is a 3-star analyst with an average return of 2.8% and a 56.6% success rate. Corak covers the Financial sector, focusing on stocks such as National Storage Affiliates Trust, Preferred Apartment Communities, and NorthStar Realty Europe Corp.

Consolidated-Tomoka Land Co has an analyst consensus of Moderate Buy, with a price target consensus of $80.

Consolidated-Tomoka Land Co’s market cap is currently $335.8M and has a P/E ratio of 15.03. The company has a book value ratio of 2.1051.

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Consolidated Tomoka Land Co. is a diversified real estate operating company. The company operates in four business segments: income properties, commercial loan investments, real estate operations, and golf operations. The Commercial loan Investments segment consists of one loan collateralized by a hotel property in Atlanta, Georgia.