Dividend SustainabilityHRZN appears to have sufficient spillover income to sustain the dividend and has already announced a quarterly dividend through 1Q26.
Merger BenefitsAfter its merger with Monroe Capital Corporation, HRZN should have more equity, enabling it to be a more important player in the increasingly significant private credit markets.
Stock ValuationReiterate $7.50 price target and Buy rating, HRZN shares are currently trading at a significant discount to the multiple of best comparable Hercules Capital.