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UBS Starts Capitala Finance (CPTA) at Buy

December 19, 2014 8:37 AM EST
Get Alerts CPTA Hot Sheet
Price: $25.40 --0%

Rating Summary:
    4 Buy, 6 Hold, 1 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 20 | Down: 14 | New: 22
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UBS initiates coverage on Capitala Finance (NASDAQ: CPTA) with a Buy rating and a price target of $21.00.

Analyst Matthew Howlett comments, " CPTA is a business development company that provides both equity and debt capital to lower middle market companies, characterized as those companies with $30MM in EBITDA or less. The company was taken public in September 2013 and acquired certain legacy funds from the predecessor to CPTA's external manager, Capitala Investment Advisors. We are expecting solid portfolio growth of 30% through 2015. Although the company is under-earning its quarterly dividend, we expect core EPS to meet the dividend beginning in 2Q15 due to significant earnings growth primarily through full investment of available capital, a related increase in leverage and therefore ROE, and the continued rotation of the portfolio to a higher allocation of current income, debt investments."

For an analyst ratings summary and ratings history on Capitala Finance click here. For more ratings news on Capitala Finance click here.

Shares of Capitala Finance closed at $18.72 yesterday.



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