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 $16.94.
Kotowski said:
“We very much like Solar’s “platform approach” to its lending business, focusing efforts on not just the typical cash flow loans that come to mind when thinking about middle- market lending, but also on asset-backed and specialty lending, the majority of which is both very senior and secured. A prime example of this is North Mill, a recently acquired portfolio holding of SUNS that focuses on equipment finance and pays an ~11% dividend. We think this strengthens SUNS’ risk/return profile in a myriad of ways, and right now, we view SUNS’ 8.3% dividend yield on a floating-rate, completely senior loan portfolio as a very compelling value.”
According to TipRanks.com, Kotowski is a 5-star analyst with an average return of 10.0% and a 65.6% success rate. Kotowski covers the Financial sector, focusing on stocks such as Eagle Point Credit Company Inc, Great Elm Capital Corporation, and Apollo Global Management LLC.
Currently, the analyst consensus on Solar Senior Capital Ltd is Moderate Buy and the average price target is $18.25, representing a 7.7% upside.
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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Solar Senior Capital Ltd’s market cap is currently $271.3M and has a P/E ratio of 11.59. The company has a Price to Book ratio of 1.00.
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Solar Senior Capital Ltd, a business development company, invests in middle market companies across the globe, primarily in the US with EBITDA of $20 – $100 million. The fund targets companies operating in the fields of diversified financial services, communications equipment, insurance, health care services, software, food products, specialty retail, professional services, internet software & services, air freight & logistics distributors, IT services, automotive retail, healthcare technology, hotels, restaurants & leisure, containers & packaging, capital markets, footwear, aerospace & defense industrial conglomerates and diversified consumer services. It provides financing in the form of senior secured loans, mezzanine loans and equity securities with an investment size of $5 – $30 million. It also makes public investments.
