In a report released today, Chris Kotowski from Oppenheimer maintained a Buy rating on CM Finance (CMFN), with a price target of $10. The company’s shares opened today at $7.81.
Kotowski commented:
“CMFN faced a rough C4Q18 with NAV falling $0.92 to $11.49 per share. This was partly due to increased market volatility and also the deterioration of the investment in Trident USA Health Services, which was not completely shocking given the low marks in prior quarters. However, the portfolio rotation continues, with six of the nine investments made during the quarter being first lien loans, leading to first lien loans composing 63.7% of the portfolio at quarter-end, up from 50.1% a year ago and boding well for future NAV preservation. We continue to see a positive outlook and expect continued capital deployment higher in the capital structure combined with stable yields to help CMFN cover its dividend this year and next.”
According to TipRanks.com, Kotowski is a 5-star analyst with an average return of 9.9% and a 61.5% success rate. Kotowski covers the Financial sector, focusing on stocks such as Eagle Point Credit Company Inc, Great Elm Capital Corporation, and Goldman Sachs Group Inc.
CM Finance has an analyst consensus of Moderate Buy, with a price target consensus of $11.
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Based on CM Finance’s latest earnings release for the quarter ending December 31, the company reported a quarterly GAAP net loss of $9.38 million. In comparison, last year the company had a net profit of $4.86 million.
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CM Finance, Inc. is a closed-end investment company, which engages in business development. Its investment objective is to is to maximize total return to stockholders in the form of current income and capital appreciation by investing directly in debt and related equity of privately held middle- market companies.
