Noble Financial Cuts PT on Harte-Hanks Inc. (HHS) to $5 Following Debt Facility, Dividend Elminiation

Noble Financial trims its price target on Buy-rated Harte Hanks (NYSE: HHS) from $7 to $5 following news of a new credit facility and elimination of its dividend payment last week.

Michael Kupinski noted the following on Monday:

• Raising interest expense, but lowers principal payments. New facility raises interest expense through higher interest rates but lowers principal payments from $5 million a quarter to just $1.25 million a quarter
• Eliminates the dividend. For the first time in the company's history, it has cut the dividend which was expected to be barely covered by cash flow. The move adds flexibility for share repurchases, which it has roughly $11 million under a previous $20 million authorization
• Lowering estimates. We are lowering our 2016 cash flow and earnings estimates to $38.8 million and $0.16 per share from $40.9 million and $0.21 per share, respectively

For an analyst ratings summary and ratings history on Harte-Hanks Inc. click here. For more ratings news on Harte-Hanks Inc. click here.

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