Analyst Michael Diana of Maxim Group reiterated a Buy rating on Pennantpark $, retaining the price target of $11.50.
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Michael Diana has given his Buy rating due to a combination of factors that indicate a positive outlook for Pennantpark’s stock. Despite the core net investment income (NII) being slightly below the quarterly dividend, the company is actively deploying previously-raised capital, which suggests no immediate need for a dividend cut. The investment portfolio has grown by 2.5%, enhancing earnings potential and partially offsetting the impact of lower loan yields.
Additionally, PFLT’s leverage remains stable, with room for growth due to its at-the-market equity issuance and the introduction of a new senior loan fund. The company’s historical credit quality record is commendable, with minimal non-accrual loans, indicating strong risk management. Furthermore, PFLT’s focus on domestic sectors less affected by tariffs adds to its stability. With a maintained price target of $11.50 and an expected total return of about 23% over the next year, the stock presents an attractive investment opportunity.
In another report released today, Truist Financial also maintained a Buy rating on the stock with a $11.00 price target.