Oppenheimer Believes Solar Senior Capital Ltd (SUNS) Still Has Room to Grow


Oppenheimer analyst Chris Kotowski maintained a Buy rating on Solar Senior Capital Ltd (SUNS) today and set a price target of $18. The company’s shares opened today at $17.36, close to its 52-week high of $17.56.

Kotowski said:

“SUNS reported 1Q19 net investment income (NII) of $0.35 per share versus our $0.34 estimate and covered the $0.35 dividend. Given that NII benefited from a $536,000, or $0.03 per share, incentive fee waiver, results were a bit shy of our expectation. While currently modeling that SUNS won’t be able to cover its dividend over the next two quarters without the help of the incentive fee waiver, in reality we believe management is likely to waive the fees so that NII can cover the dividend. With an $18 price target and 8.2% dividend yield, we continue to recommend SUNS with a total expected return of ~13% over the next 12-18 months, with a significantly lower risk profile than the average BDC, in our opinion.”

According to TipRanks.com, Kotowski is a top 100 analyst with an average return of 13.1% and a 72.8% success rate. Kotowski covers the Financial sector, focusing on stocks such as Apollo Global Management LLC, Fidus Investment Corporation, and BlackRock TCP Capital Corp.

The word on The Street in general, suggests a Moderate Buy analyst consensus rating for Solar Senior Capital Ltd with a $18.25 average price target, a 5.1% upside from current levels. In a report released today, Maxim Group also reiterated a Buy rating on the stock with a $18.50 price target.

See today’s analyst top recommended stocks >>

Based on Solar Senior Capital Ltd’s latest earnings release for the quarter ending December 31, the company reported a quarterly GAAP net loss of $2.63 million. In comparison, last year the company had a net profit of $5.52 million.

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.

Solar Senior Capital Ltd, operates as a private equity fund. It is a closed-end, externally managed, non-diversified management investment company. It also provides investors access to an illiquid private credit asset class through a yield-oriented, publicly-traded common stock. The company was founded in December 2010 and is headquartered in New York, NY.

Stay Ahead of Everyone Else

Get The Latest Stock News Alerts