Analysts Offer Insights on Financial Companies: WhiteHorse (WHF) and American Finance Trust Inc (AFIN)


Companies in the Financial sector have received a lot of coverage today as analysts weigh in on WhiteHorse (WHF) and American Finance Trust Inc (AFIN).

WhiteHorse (WHF)

In a report issued on September 13, Timothy P. Hayes from B.Riley FBR reiterated a Buy rating on WhiteHorse, with a price target of $14.50. The company’s shares closed last Monday at $13.88.

Hayes wrote:

“We reiterate our Buy rating and $14.50 price target on shares of WhiteHorse Finance, Inc. (WHF) following the announcement of a $0.195/share special dividend. We believe the special dividend is largely in connection with the sale of the company’s outsized Aretec equity position in 4Q18, which generated approximately $33M of realized gains. We believe the majority of the retained proceeds from the sale have since been redeployed into interest-earning debt investments and that a strong forward pipeline, coupled with higher leverage in the range of 1.00x to 1.25x and strong credit performance, should continue to support NII growth ahead. We continue to view shares of WHF to be attractively valued, currently trading at 0.90x 2Q19 NAV and an ~11.5% dividend yield, when including the supplemental dividend.”

According to TipRanks.com, Hayes is a 4-star analyst with an average return of 7.6% and a 77.5% success rate. Hayes covers the Financial sector, focusing on stocks such as Fidus Investment Corporation, Ready Capital Corporation, and Saratoga Investment Corp.

WhiteHorse has an analyst consensus of Strong Buy, with a price target consensus of $15.

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American Finance Trust Inc (AFIN)

B.Riley FBR analyst Bryan Maher initiated coverage with a Hold rating on American Finance Trust Inc yesterday and set a price target of $14. The company’s shares closed last Monday at $13.36.

Maher commented:

“We are initiating coverage of American Finance Trust, Inc. with a Neutral rating and a $14 price target. AFIN focuses on owning and acquiring service retail properties, such as restaurants, pharmacies, gas and convenience stores, and retail bank branches—essentially, retail-oriented properties that are generally more resistant to competition from e-commerce. We believe a key part of the AFIN story is its current asset recycling program, which partially consists of selling a meaningful number of its SunTrust bank branches at a mid-5% cap rate and redeploying the proceeds into service retail assets at mid-7% cap rates. We estimate that this, along with selling non-strategic assets (office and distribution) and built-in rent escalators in the core portfolio, should allow AFIN to cover its $1.10 annual dividend, on an AFFO basis, by 2021.”

According to TipRanks.com, Maher is a 4-star analyst with an average return of 7.4% and a 57.1% success rate. Maher covers the Financial sector, focusing on stocks such as Industrial Logistics Properties Trust, Senior Housing Properties Trust, and Office Properties Income Trust.

American Finance Trust Inc has an analyst consensus of Hold, with a price target consensus of $14.

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