Michael Diana, an analyst from Maxim Group, reiterated the Buy rating on SLR Investment Corp. (SLRC – Research Report). The associated price target remains the same with $19.00.
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Michael Diana has given his Buy rating due to a combination of factors that highlight SLR Investment Corp.’s strong financial position and growth potential. The company’s net investment income matched its dividend, maintaining a stable net asset value per share. This stability, along with a robust net interest margin, indicates that SLRC is well-positioned to sustain its dividend yield of 10.5%, which is attractive to investors.
Furthermore, SLRC’s management has demonstrated a risk-averse approach, focusing on senior secured loans in specialty commercial finance niches with lower risk profiles. This strategy has resulted in strong credit quality, with minimal non-accruals. Additionally, SLRC has significant capital available for investment, providing opportunities for portfolio growth. The company’s joint venture with SunStone Senior Credit further expands its lending capacity, positioning SLRC for future earnings growth. These factors, combined with a favorable investment environment, support the Buy rating and a price target of $19, suggesting potential stock price appreciation and an estimated total return of about 32% over the next 12 months.
In another report released today, Raymond James also maintained a Buy rating on the stock with a $17.00 price target.