Oppenheimer Believes New Mountain Finance (NMFC) Still Has Room to Grow


In a report released yesterday, Chris Kotowski from Oppenheimer assigned a Buy rating to New Mountain Finance (NMFC), with a price target of $15. The company’s shares closed yesterday at $14.26, close to its 52-week high of $14.30.

Kotowski commented:

“NMFC’s general operating principle seems to be that it seeks to generate its ~10% annual dividend distribution as consistently as it can and with as little risk as possible. Over the past year the company’s balance sheet leverage has increased from 0.81X to 1.25X but more than all the growth has come from first lien assets, while the non-first lien assets are down by 11.5%. Thus, the mix of first lien assets has increased from 45% to 61%. Asset quality remains outstanding and there was only one, negligible non-accrual asset ($1M cost, $0 FMV) at March 31st. NAV after eight years as a public company is $13.45/share versus a $13.75 IPO price, indicating minimal losses over time.”

According to TipRanks.com, Kotowski is a top 100 analyst with an average return of 12.5% and a 70.1% success rate. Kotowski covers the Financial sector, focusing on stocks such as Apollo Global Management LLC, Fidus Investment Corporation, and BlackRock TCP Capital Corp.

New Mountain Finance has an analyst consensus of Moderate Buy, with a price target consensus of $14.75, which is a 3.4% upside from current levels. In a report issued on April 24, Wells Fargo also maintained a Buy rating on the stock with a $14.50 price target.

See today’s analyst top recommended stocks >>

The company has a one-year high of $14.30 and a one-year low of $12.06. Currently, New Mountain Finance has an average volume of 388.4K.

Based on the recent corporate insider activity of 12 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 NMFC in relation to earlier this year.

TipRanks has tracked 36,000 company insiders and found that a few of them are better than others when it comes to timing their transactions. See which 3 stocks are most likely to make moves following their insider activities.

New Mountain Finance Corp. is a private equity fund and close-eneded non-diversified management investment company. It invests in middle-market companies.

Stay Ahead of Everyone Else

Get The Latest Stock News Alerts