Raymond James Starts PennantPark Floating Rate Capital (PFLT) at Market Perform

Raymond James analyst Robert Dodd initiates coverage on PennantPark Floating Rate Capital (NYSE: PFLT) with a Market Perform rating.

The analyst comments "We are initiating coverage on Pennant Park Floating Rate Capital Limited (PFLT) at Market Perform. PFLT currently trades at ~0.94x on a price-to-NAV basis, a slight discount to the group median of 0.98x and equity weighted average of 1.05x. The shares are currently yielding 11.5% on a base dividend basis, compared to the median and equity weighted average consensus projected industry dividend yield of 10.7%. We view PFLT positively on a general credit basis, and our earnings projections are sufficient to cover the dividend on a go forward basis even as rates begin trending down. We believe that the shares are fairly valued as this stage given an element of uncertainty regarding future plans for the loan fund program. Hence, we initiate coverage with a Market Perform rating."

For an analyst ratings summary and ratings history on PennantPark Floating Rate Capital click here. For more ratings news on PennantPark Floating Rate Capital click here.

Shares of PennantPark Floating Rate Capital closed at $10.71 yesterday.

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