Oppenheimer analyst Chris Kotowski maintained a Buy rating on Solar Capital Ltd (SLRC) today and set a price target of $23. The company’s shares opened today at $21.36.
Kotowski wrote:
“SLRC reported NII of $0.44/share, coming in above our $0.41 estimate and more than covering the $0.41 dividend. Portfolio appreciation for the quarter led to a NAV of $21.93/share, up 0.8% Y/Y, overcoming the dip following the 4Q18 volatility. The comprehensive portfolio grew 4.2% of net investments, with growth across three of the verticals offsetting the $19.5M net decline in traditional cash flow loans. With a totally performing portfolio and enough available capital on hand to reach the 0.90 – 1.25x target leverage ratio (up from the net debt-to-equity of 0.63x this quarter), a higher NII run rate seems easily attainable with accompanying dividend hikes likely to follow. We continue to recommend the stock.”
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.
Currently, the analyst consensus on Solar Capital Ltd is a Moderate Buy with an average price target of $21.58.
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Based on Solar Capital Ltd’s latest earnings release for the quarter ending December 31, the company reported a quarterly net profit of $8.91 million. In comparison, last year the company had a net profit of $20.05 million.
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Solar Capital Ltd. is a closed-ened, externally managerd, non-diversified management investment company. The firm invests in in privately held U.S. middle-market companies. Its objective is to generate both current income and capital appreciation through debt and equity investments.
