Oppenheimer analyst Chris Kotowski maintained a Buy rating on Monroe Capital (MRCC) today and set a price target of $15. The company’s shares closed yesterday at $12.75.
Kotowski observed:
“All lenders will have an occasional loss, and while MRCC has had fewer than its share over its history as a public company, 2018 results were marred in particular by one large credit loss ($24.5M to TPP Operating Co.) that drove an 8.1% decline in NAV over the course of the year, from $13.77 to $12.66. While there were some (probably) temporary marks in the year-end NAV, and we could easily imagine a small recovery in NAV in early 2019, 2018 was clearly painful. That said, the company’s business model is so inherently profitable that it continued covering its dividend out of core net investment income (NII) for the 19th consecutive quarter.”
According to TipRanks.com, Kotowski is a 5-star analyst with an average return of 10.5% and a 62.3% success rate. Kotowski covers the Financial sector, focusing on stocks such as Apollo Global Management LLC, Fidus Investment Corporation, and Oaktree Capital Group Llc.
Monroe Capital has an analyst consensus of Hold, with a price target consensus of $12.50.
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Monroe Capital’s market cap is currently $260.7M and has a P/E ratio of 37.35. The company has a Price to Book ratio of 1.
Based on the recent corporate insider activity of 7 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of MRCC in relation to earlier this year.
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Monroe Capital Corp. is an externally managed, closed-end, non-diversified management investment company, which engages in the provision of financial solutions. It offers customized financing solutions focused primarily on senior, unitranche and junior secured debt and, to a lesser extent, unsecured subordinated debt and equity, including equity co-investments in preferred and common stock and warrants. The company was founded on February 9, 2011 and is headquartered in Chicago, IL.
