Keefe Bruyette analyst Paul Johnson lowered the firm’s price target on Oaktree Specialty Lending (OCSL) to $17 from $18 and keeps a Market Perform rating on the shares. The firm says that while non-accruals declined slightly, credit issues have persisted for Oaktree, and this quarter was not an improvement. The analyst reduced estimates due to a lower base rate projection and portfolio yield compression. Keefe believes the company’s dividend is at risk. Despite the positive fee waiver and prior base fee reduction, Oaktree’s net interest income is currently below the dividend, and the dividend seems unsustainable, the analyst tells investors in a research note.
Don’t Miss TipRanks’ Half-Year Sale
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
- Make smarter investment decisions with TipRanks' Smart Investor Picks, delivered to your inbox every week.
Published first on TheFly – the ultimate source for real-time, market-moving breaking financial news. Try Now>>
Read More on OCSL: