UBS on Business Development Companies: 2Q and 2H Look at ARCC, GBDC, MCC, HRZN
Tweet Send to a FriendGet Alerts ARCC Hot Sheet
Price: $18.21 --0%
Rating Summary:
7 Buy, 5 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 7 | Down: 13 | New: 13
Rating Summary:
7 Buy, 5 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 7 | Down: 13 | New: 13
Trade ARCC Now!
UBS on Business Development Companies: Estimate Most 2Q Results to Come in Slightly Over Consensus
Analyst, Abu Ramin, said, "There seems to be no singular trend driving the mildly positive 2Q results, though changes in the middle market lending landscape imply less robust loan growth in 2H12. June quarter originations likely began strong at most BDCs as deteriorating economic news halted the 1Q high yield rally and stabilized yields. The second half of the June quarter likely slowed down for BDCs as more aggressive deal structures committed to in 1Q made the market less attractive. Looking forward, we believe 2H will see increased M&A activity, but that the positives will be partially offset as riskier underwriting limits the upside for BDCs."
"We prefer higher quality names like Ares Capital (Nasdaq: ARCC) and Golub Capital (Nasdaq: GBDC) since most BDCs in our coverage trade in a very tight range around 1.02x P/BV. We also prefer smaller, niche market BDCs that trade at discount to peers like Medley Capital (NYSE: MCC) and Horizon Technology Finance (Nasdaq: HRZN)."
Join StreetInsider.com FREE and get immediately alerted when news breaks on your stocks and other market items - JOIN NOW
*NEW - Download StreetInsider's FREE iPhone and iPad App - Click Here
Analyst, Abu Ramin, said, "There seems to be no singular trend driving the mildly positive 2Q results, though changes in the middle market lending landscape imply less robust loan growth in 2H12. June quarter originations likely began strong at most BDCs as deteriorating economic news halted the 1Q high yield rally and stabilized yields. The second half of the June quarter likely slowed down for BDCs as more aggressive deal structures committed to in 1Q made the market less attractive. Looking forward, we believe 2H will see increased M&A activity, but that the positives will be partially offset as riskier underwriting limits the upside for BDCs."
"We prefer higher quality names like Ares Capital (Nasdaq: ARCC) and Golub Capital (Nasdaq: GBDC) since most BDCs in our coverage trade in a very tight range around 1.02x P/BV. We also prefer smaller, niche market BDCs that trade at discount to peers like Medley Capital (NYSE: MCC) and Horizon Technology Finance (Nasdaq: HRZN)."
Join StreetInsider.com FREE and get immediately alerted when news breaks on your stocks and other market items - JOIN NOW
*NEW - Download StreetInsider's FREE iPhone and iPad App - Click Here
You May Also Be Interested In
- UPDATE: Wedbush Downgrades XenoPort (XNPT) to Neutral
- Expect Lower Guidance from NetApp (NTAP), But With Stock 'In Play' Downside is Limited - BMO Capital
- Jefferies Raises PT on Aeropostale (ARO) Ahead of Q1
Create E-mail Alert Related Categories
Analyst Comments, Analyst EPS ViewRelated Entities
UBS, Golub Capital
Login with Facebook
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
