UPDATE: Taglich Brothers Initiates Alico at Speculative Buy on Sales Growth

Taglich Brothers initiated Coverage on Alico ALCO with a Speculative Buy and a $35 price target. Taglich Brothers noted, "Shares of ALCO currently trade at a multiple of 1.9X TTM sales, near its average of 2X over the past three years. A comparison group of 10 farm products companies with market values of approximately $500 million and under are also trading at a price to sales multiple of 2X. With the sales growth we project, we believe the market will accord the stock a multiple of 2X sales. Applying a multiple of 2X to our fiscal 2014 sales of $18.78 per share, discounted to a twelve-month value of $17.44 per share, values the stock at approximately $35 per share. Our discount factor of 8% reflects the stock's beta of 0.85." Alico closed at $32.05 on Wednesday.