Palmer Square price target raised to $17 from $16.50 at UBS

UBS raised the firm’s price target on Palmer Square to $17 from $16.50 and keeps a Neutral rating on the shares. The focus for investors during business development company Q2 earnings will be on the level of spread compression on new loans and the development of any new problem loans, the analyst tells investors in a research note. The firm expects Q2 earnings should show continued stability in returns for the BDCs and solid dividend coverage. However, this favorable return expectation is already reflected in the valuation with the sector trading at a premium to historical valuation, contends UBS.