UPDATE: Compass Point Initiates Buy, $41 PT on Federal Agricultural Mortgage Corporation

Compass Point initiates its coverage on Federal Agricultural Mortgage Corporation

with a Buy rating and a price target of $41 per share on a company that is a key credit provider to Rural America. Compass Point comments, "Originations will benefit from an improving economy, but additional growth drivers exist. As the sole secondary market provider for agricultural and rural utility financing, Farmer Mac uses their low funding cost to provide an economically attractive financing outlet for originating entities. Gradually increasing agricultural prices are generally positive for agricultural loan demand, and increasing economic activity benefits demand for rural utility financing. While we believe current economic conditions are favorable for both products, Rural Utilities originations should benefit from the Clean Energy movement, and the potential to increase loan limits (currently $22.5MM) could also enable the company to capture a larger share of the syndication market." AGM closed at $22.38 on Tuesday.