Maxim Group analyst Michael Diana reiterated a Buy rating on SLR Investment Corp. yesterday and set a price target of $19.00.
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Michael Diana has given his Buy rating due to a combination of factors including SLR Investment Corp.’s strong financial performance and strategic positioning. The company reported second-quarter earnings per share that exceeded its dividend, indicating a stable net asset value per share. This stability, coupled with a high yield on loans, supports an attractive net interest margin, even though it has slightly decreased from the previous quarter.
Additionally, SLRC’s portfolio is characterized by high-quality, first-lien, floating-rate loans, with a significant portion in lower-risk, higher-yield specialty commercial finance niches. The company also maintains strong credit quality, with minimal non-accruals, thanks to risk-averse management. Furthermore, SLRC’s growth opportunities are bolstered by record loan originations and a joint venture senior lending program, which provides additional capacity for investment. These factors, along with an expected dividend yield of 10.1% and potential stock price appreciation, contribute to the Buy rating and a price target of $19.
SLRC’s price has also changed slightly for the past six months – from $16.780 to $16.440, which is a -2.03% drop .