Bank of America Securities analyst Derek Hewett maintained a Hold rating on Palmer Square Capital BDC Inc. (PSBD – Research Report) today and set a price target of $16.50.
Derek Hewett has given his Hold rating due to a combination of factors including Palmer Square Capital BDC Inc.’s (PSBD) better-than-expected quarterly performance and stable financial metrics. The company surpassed Bank of America’s core earnings per share estimate, primarily driven by robust recurring interest income, and also showed a strong GAAP return on equity due to portfolio appreciation. Despite these positive outcomes and an increase in net asset value per share, Hewett maintains that the current risk/reward profile is balanced, considering the stock’s valuation.
Furthermore, the stability of PSBD’s leverage, the absence of near-term debt maturities, and the company’s exploration of alternative funding options suggest a solid financial position. PSBD’s portfolio remains conservative and is expected to grow, yet Hewett believes that the current market price adequately reflects the company’s prospects. With this in mind, alongside the maintenance of earnings forecasts and the target price, a Hold rating suggests that investors should retain their positions without additional accumulation at present levels.
According to TipRanks, Hewett is a 4-star analyst with an average return of 8.6% and a 65.71% success rate. Hewett covers the Real Estate sector, focusing on stocks such as Annaly Capital, PennyMac Mortgage, and AGNC Investment.
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Palmer Square Capital BDC Inc. (PSBD) Company Description:
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