Oppenheimer analyst Chris Kotowski maintained a Buy rating on Solar Senior Capital Ltd (NASDAQ: SUNS) today and set a price target of $18. The company’s shares opened today at $16.90.
Kotowski wrote:
“We very much like Solar’s “platform approach” to its lending business, where SUNS takes stakes in companies that underwrite specialty and asset-backed loans, which are both very senior and secured. SUNS’ board approved a target leverage under the new rules of 125-150%, less than the allowed maximum, and SUNS will submit it to a shareholder vote. We think that, given SUNS senior focus, this seems appropriate and the company’s newly restructured credit facility allows for an expanded balance sheet. We think the expanded balance sheet leverage provides an excellent opportunity for SUNS to grow not just the portfolio of regular way loans, but also the “non-qualifying” bucket, which will help to boost the portfolio earnings profile in a risk-favorable way. SUNS remains a top pick.”
According to TipRanks.com, Kotowski is a 5-star analyst with an average return of 11.6% and a 69.7% success rate. Kotowski covers the Financial sector, focusing on stocks such as Eagle Point Credit Company Inc, Great Elm Capital Corporation, and Fidus Investment Corporation.
Currently, the analyst consensus on Solar Senior Capital Ltd is a Moderate Buy with an average price target of $18.25, a 8.0% 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.
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Based on Solar Senior Capital Ltd’s latest earnings release for the quarter ending March 31, the company reported a quarterly net profit of $5.52 million. In comparison, last year the company had a net profit of $5.23 million.
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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.
