Saratoga Investment Corp. | NEUTRAL ( SAR, $21.26) | Lower Middle Market Focused BDC with Ample Dry Powder to Drive Strong Portfolio Growth with Minimal Equity Issuance, Significant Non-Sponsor and Second Lien Composition Keep Us On the Sidelines For Now - Initiating With a NEUTRAL Rating And $23 Price Target.
Capital Southwest Corp. | BUY (CSWC, $16.31) | Diamond in the Rough: Internally Managed BDC at Discount to NAV/share, Further Dividend Increases Likely with Expectations of Strong Portfolio Growth Ahead, Portfolio with Both Lower and Upper Middle Market Investments Enables Versatility in a Challenging Market - Initiating with a BUY Rating And $22 Price Target.
Golub Capital BDC, Inc. | NEUTRAL (GBDC, $17.55) | Strong Origination Platform, Good Asset Quality with Very Low Non- Accruals, Consistently Increasing NAV/share, But Valuation is Fair and NII/share is Likely to Remain Flat - Initiating With A NEUTRAL Rating And $18 Price Target.
Triangle Capital Corp. | BUY (TCAP, $19.55) | Internally Managed, Disciplined Originator with Strong Growth Prospects and Prudent Capital Management - Initiating With a BUY Rating And $22 Price Target.
Ares Capital Corp. | NEUTRAL (ARCC $13.87) | Strong Origination Platform and NAV Stability, Although The Portfolio Shift Away From First Lien is Unfavorable and Likely to Weigh on Valuation - Initiating With A NEUTRAL Rating And $16 Price Target.
Prospect Capital Corporation | NEUTRAL (PSEC, $6.05) | Despite a Strong Origination Platform, Fees Are Far Too High, 30% Basket Likely to Weigh on NAV Multiple - Initiating With A NEUTRAL Rating And $7 Price Target.