Analyst Derek Hewett from Bank of America Securities reiterated a Buy rating on Kayne Anderson BDC, Inc. and decreased the price target to $15.50 from $16.50.
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Derek Hewett has given his Buy rating due to a combination of factors including Kayne Anderson BDC, Inc.’s strong quarterly performance and stable financial metrics. The company reported a solid quarter with stable net asset value per share and a stable portfolio yield despite a challenging macroeconomic environment. Core earnings per share exceeded expectations, driven by prepayment and original issue discount income, along with a favorable credit lookback.
Moreover, the company’s credit fundamentals remain robust, with a slight improvement in non-accruals and stable portfolio fundamentals. The leverage ratio increased to 1.01x, aligning with the target range, and the company successfully issued $200 million in unsecured notes at a favorable rate. These factors, combined with strategic stock repurchases that were accretive to net asset value, position Kayne Anderson BDC, Inc. well for future growth and justify the Buy rating.
In another report released yesterday, Wells Fargo also maintained a Buy rating on the stock with a $15.00 price target.
KBDC’s price has also changed slightly for the past six months – from $16.030 to $14.680, which is a -8.42% drop .