Oppenheimer analyst Chris Kotowski maintained a Buy rating on Fidus Investment Corporation (NASDAQ: FDUS) today and set a price target of $18. The company’s shares opened today at $12.95, close to its 52-week low of $12.63.
Kotowski wrote:
“Fidus’ 1Q18 adjusted net investment income (NII) came in at $0.36 vs. our $0.37 estimate, consensus’ $0.38 and the $0.39 dividend, but fundamentally we view it as a solid quarter. That NII is tracking a bit below the dividend is not a reflection of any significant problem, in our view, but rather that it has just taken a little longer to grow enough to overcome a share hurdle from last summer’s equity offering than we previously modeled. Second-quarter 2018 will likely still be short as well, but we still expect Fidus to get to full coverage later this year. Meanwhile, the company has $0.42 per share of spillover income and is well poised to generate additional realized equity gains after ~$0.31 in 1Q.”
According to TipRanks.com, Kotowski is a 5-star analyst with an average return of 9.5% and a 63.0% 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.
Fidus Investment Corporation has an analyst consensus of Strong Buy, with a price target consensus of $16.75.
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Fidus Investment Corporation’s market cap is currently $321.1M and has a P/E ratio of 7.04. The company has a book value ratio of 0.8164.
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Fidus Investment Corp is a business development company that invests in lower middle market companies with revenues of $10 – $150 million and with an annual EBITDA between $3 – $20 million located in the US. The fund focuses on companies operating in the fields of business services, industrial products & services, value-added distribution, healthcare products & services, consumer products & services including retail, food, and beverage, defense & aerospace, energy services, transportation & logistics and niche manufacturing. It provides financing for LBOs, subordinated loan, mezzanine, debt, secured debt, equity, warrants, growth capital transactions with transaction size ranging between $5 – $20 million. It acquires minority equity stakes and a board seat.
