In a report released yesterday, Michael Diana from Maxim Group reiterated a Buy rating on SLR Investment Corp. (SLRC – Research Report), with a price target of $19.00.
Michael Diana has given his Buy rating due to a combination of factors including the strong performance of SLR Investment Corp. and its attractive growth prospects. The company’s first quarter net interest income (NII) of $0.44 sufficiently covered its dividend payout, reflecting a healthy net interest margin (NIM) of 7.31%. SLR’s current dividend yield stands at an appealing 10.5%, and the company’s net asset value (NAV) has shown stability, with a slight increase of 0.6%. This financial stability, alongside management’s positive outlook on investment opportunities and the company’s low leverage, underpins the favorable rating.
Additionally, the company’s credit quality remains robust, with only a minor increase in non-accruals, which is attributed to prudent credit management and a focus on senior secured loans. The diversification into lower-risk commercial finance niches further strengthens SLR’s credit profile. With over $500 million of available capital for investment and a strategic joint venture expanding its lending capacity, SLR is well-positioned to capitalize on growth opportunities. These factors, combined with the company’s solid dividend coverage and the potential for an estimated total return of about 32% over the next twelve months, support Michael Diana’s Buy recommendation and a price target of $19.
Diana covers the Financial sector, focusing on stocks such as Horizon Technology, SLR Investment Corp., and Customers Bancorp. According to TipRanks, Diana has an average return of 11.3% and a 55.91% success rate on recommended stocks.
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SLR Investment Corp. (SLRC) Company Description:
Solar Capital Ltd. is a closed-ened, externally managerd, non-diversified management investment company. The firm invests in in privately held U.S. middle-market companies. Its objective is to generate both current income and capital appreciation through debt and equity investments. The company was founded on November 2007 and is headquartered in New York, NY.
