In a report released yesterday, Michael Diana from Maxim Group reiterated a Buy rating on Pennantpark $, with a price target of $11.50.
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Michael Diana has given his Buy rating due to a combination of factors that highlight Pennantpark’s strategic growth and stability. Despite the net investment income falling short of the quarterly dividend, Pennantpark has demonstrated robust investment capacity and earnings potential through strong originations and strategic acquisitions. The formation of a new senior loan fund and the sale of loans to these funds further bolster its financial position.
Moreover, the company’s leverage remains within a manageable range, allowing room for portfolio expansion. Pennantpark’s historical credit quality is commendable, with minimal non-accrual loans and low annual losses. The expected growth in the investment portfolio and senior loan funds is anticipated to cover future dividends, supporting the stability of its dividend policy. Diana maintains a price target of $11.50, reflecting confidence in the company’s potential for stock price appreciation and a substantial total return over the next year.
According to TipRanks, Diana is an analyst with an average return of -0.6% and a 47.90% success rate. Diana covers the Financial sector, focusing on stocks such as First Savings Financial Group, Customers Bancorp, and Nicolet Bankshares.
In another report released on November 26, Truist Financial also maintained a Buy rating on the stock with a $11.00 price target.