MidCap Financial Investment Corporation (MFIC – Research Report), the Financial sector company, was revisited by a Wall Street analyst yesterday. Analyst Finian O’Shea from Wells Fargo maintained a Buy rating on the stock and has a $14.00 price target.
Finian O’Shea has given his Buy rating due to a combination of factors that highlight the potential for growth and stability in MidCap Financial Investment Corporation. Despite the elevated leverage associated with CLO financing, the stock remains attractive due to its current discount. The company’s net operating income (NOI) aligns with expectations, and while prepayment and fee income are subdued, the steady spread on direct origination indicates resilience.
Management’s strategic moves, such as the partial insurance recovery from Merx Aviation and progress in selling remaining aircraft, suggest positive developments. Although there were markdowns in certain areas like SHD Oil & Gas and Congruex Group, these did not significantly impact the net asset value. The company’s intention to increase leverage while maintaining a strong borrowing base further supports the optimistic outlook. The revised NOI estimates for the coming years, along with a slight adjustment in the price target, reflect confidence in the company’s ability to improve its financial performance.
In another report released yesterday, KBW also maintained a Buy rating on the stock with a $15.00 price target.
MFIC’s price has also changed slightly for the past six months – from $13.810 to $13.750, which is a -0.43% drop .