Why This Influential Uranium Investor Thinks Now Is The Time To Invest In This Uranium Discovery on 12/22/2021. Learn More

Get the Latest Investment Ideas Delivered Straight to Your Inbox. Subscribe


Outlook Positive After Agricultural Firm Beats Expectations
Research Report

Share on Stocktwits


The Quick Take

  • ROTH Capital Partners has a Buy rating and a $44 per share price target on citrus company Alico Inc.
  • ROTH said investors can expect increased production and pricing from the company in 2022
  • Sales of non fruit-bearing land could be worth more than $120 million to the company
  • Alico plans to plant more than 1.5 million trees, which ROTH estimates would expand production to 6.6 million boxes in 2022 and 7 7.1 million boxes in 2023

Alico Inc.'s (ALCO:NASDAQ) fourth quarter 2021 financial results were "above our expectations for a seasonally slow quarter," ROTH Capital Partners analyst Gerry Sweeney wrote in a Dec. 8 research note. 

The Alberta, Canada-headquartered company owns and manages approximately 84,000 acres devoted to citrus production, conservation, and natural resources. Earlier this month, Alico generated $5.675 million from selling some of its non fruit-bearing land. Another 32,000 acres of it are for sale and, according to Sweeney, could be worth more than $120 million.

The analyst said the company's fourth quarter 2021 revenue was $4 million versus ROTH's estimated $1.3 million. Adjusted EBITDA was $1.3 million; ROTH forecasted $1 million. Adjusted earnings per share was -$0.33, better than ROTH's projected -$0.48.

The total boxes of citrus produced in the fourth quarter were down 16.1% year over year, due to unfavorable weather. Production, however, was better than that for all of Florida, which also was lower than in 2020 by 21.7%.

Alico's guidance for 2022 is $3.3 million below ROTH's forecast as Alico is being more conservative about the ramp up of fruit production. Newly planted trees start bearing fruit after four years and reach maturity after seven or eight.

"Fruit production should expand, driving revenue and EBITDA, which ALICO continues to return to shareholders or potentially reinvest in other fruit opportunities," Sweeney added.

As for pricing, it will be close to or higher than 2021's $2.45 average, according to Alico management. Current demand should work in Alico's favor. Demand for citrus is high among juice producers because the drought caused decreased supply from Brazil, which produces the most oranges in the world.

"Combine non-citrus land (optionality on sale) with improving citrus production under long-term contracts and Alico's focus on returning capital to shareholders, and we believe the company offers a compelling opportunity," Sweeney concluded.


1) Doresa Banning compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor. She or members of her household own securities of the following companies mentioned in the article: None. She or members of her household are paid by the following companies mentioned in this article: None.
2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: None. Click here for important disclosures about sponsor fees. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
4) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the decision to publish an article until three business days after the publication of the article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases. 
6) This article does not constitute medical advice. Officers, employees and contributors to Streetwise Reports are not licensed medical professionals. Readers should always contact their healthcare professionals for medical advice.

Important Disclaimers for ROTH Capital Partners LLC, Alico Inc., Dec. 8, 2021

ROTH makes a market in shares of Alico, Inc. and as such, buys and sells from customers on a principal basis.
ROTH Capital Partners, LLC expects to receive or intends to seek compensation for investment banking or other business relationships with the covered companies mentioned in this report in the next three months. The material, information and facts discussed in this report other than the information regarding ROTH Capital Partners, LLC and its affiliates, are from sources believed to be reliable, but are in no way guaranteed to be complete or accurate. This report should not be used as a complete analysis of the company, industry or security discussed in the report. Additional information is available upon request. This is not, however, an offer or solicitation of the securities discussed. Any opinions or estimates in this report are subject to change without notice. An investment in the stock may involve risks and uncertainties that could cause actual results to differ materially from the forward-looking statements. Additionally, an investment in the stock may involve a high degree of risk and may not be suitable for all investors. No part of this report may be reproduced in any form without the express written permission of ROTH. Copyright 2021. Member: FINRA/SIPC.

Want to read more about Agriculture investment ideas?
Get Our Streetwise Reports Newsletter Free and be the first to know!

A valid email address is required to subscribe