Oppenheimer has downgraded Horizon Technology Finance Corp (NASDAQ: HRZN) to Perform on valuation and removed the price target of $14.
According to the brokerage, shares of Horizon trade at 1.03x NAV, a 12 percent premium to the industry average of 0.92x, and
reached the earlier price target of $14.
"We stress that is purely a valuation call: the company is performing well from both an earnings and credit perspective, but we
don't believe 2017 will have an earnings catalyst to justify further premium above NAV," analyst Chris Kotowski wrote in a
note.
Related Link: Channel
Checks Suggest In-Line Quarter For Cisco Systems
However, the analyst likes the company's venture lending business model, which provides good "uncorrelated returns with
higher-than-average investment yields."
Further, Kotowski noted that the cautious tone of the management about deploying capital in the current low growth environment
is unlikely to impact the company's ability to cover the dividend out of NII in the near term. As such, the analyst views the
company's 10.0 percent indicated yield as secure.
At the time of writing, shares of Horizon fell 3.22 percent to $13.26.
Full ratings
data available on Benzinga Pro.
Do you have ideas for articles/interviews you'd like to see more of on Benzinga? Please email feedback@benzinga.com with your best article ideas. One person will be randomly selected to win
a $20 Amazon gift card!
Latest Ratings for HRZN
Date |
Firm |
Action |
From |
To |
Aug 2016 |
Oppenheimer |
Downgrades |
Outperform |
Perform |
Mar 2016 |
Oppenheimer |
Upgrades |
Market Perform |
Outperform |
Jan 2016 |
Raymond James |
Downgrades |
Outperform |
Market Perform |
View More Analyst Ratings for
HRZN
View the Latest Analyst Ratings
© 2016 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.