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Opco downgrades Oaktree Specialty on recent credit stress

Opco downgrades Oaktree Specialty on recent credit stress

Oppenheimer analyst Mitchel Penn downgraded Oaktree Specialty Lending to Perform from Outperform with a price target of $18, down from $20, following the fiscal Q3 report. The analyst cites recent credit stress for the downgrade. The firm estimates that Oaktree can earn a 9.5% return on equity and given an estimated cost of equity capital of 9.5%, it calculates a fair value of $18 per share, or one-times book value.

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