Compass Point upgraded PennantPark (PNNT) to Neutral from Sell with a price target of $5.50, down from $5.75. The firm believes business development companies with high equity exposure will trade at a material discount to net asset value. PennantPark’s only path to improving net interest income is monetizing its large equity investments, the analyst tells investors in a research note. Compass cites valuation for the upgrade despite the risks it sees.
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