In a report released today, Michael Diana from Maxim Group reiterated a Buy rating on Garrison (NASDAQ: GARS), with a price target of $11. The company’s shares opened today at $8.41.
Diana said:
“GARS reported 2Q18 EPS of $0.18 versus its dividend of $0.28, so NAV was down 0.9%, to $11.44. We are maintaining our 2018 dividend estimate of $1.12, representing a yield of 13.3%, covered by earnings in the remaining two quarters of 2018. Earnings should be helped by the 4Q18 refinancing of GARS’ CLO. As GARS has now resolved most of its legacy problem loans, we are now valuing it closer to peers that have not encountered difficulties. Our price target of $11 equates to 0.96x NAV, a discount to the 1.0x NAV level at which we believe well-performing BDCs should trade in the current environment.”
According to TipRanks.com, Diana is a 5-star analyst with an average return of 7.4% and a 63.0% success rate. Diana covers the Financial sector, focusing on stocks such as First Savings Financial Group, Manhattan Bridge Capital Inc, and Arlington Asset Investment.
Garrison has an analyst consensus of Moderate Buy, with a price target consensus of $11.
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The company has a one-year high of $8.95 and a one-year low of $7.77. Currently, Garrison has an average volume of 39.36K.
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Garrison Capital, Inc. operates as a externally managed, non-diversified closed-end investment fund. The firm’s investment objective is to generate current income and capital appreciation by making investments primarily in debt securities and loans of U.S. based middle-market companies.
