Lucid Capital Markets Starts Gladstone Investment Corporation (GAIN) at Buy

Lucid Capital Markets analyst Erik Swick initiates coverage on Gladstone Investment Corporation (NASDAQ: GAIN) with a Buy rating and a price target of $14.50.

The analyst comments "We are initiating coverage of Gladstone Investment Corp with a Buy rating and $14.50 price target, which suggests GAIN should trade at 109% of our FY2026 year-end NAV estimate of $13.24. We are attracted to GAIN’s diversified, private equity-style investment strategy and outlook for profitability return metrics to continue to outperform peer averages. GAIN’s investment strategy has proven successful through multiple credit and economic cycles generating above average shareholder returns, while employing lower leverage than many peers. With the stock trading at a P/NAV of 103%, below the BDC’s long-term average of 105%, we feel shares are attractively valued today. Our $14.50 price target translates to a 6.6% dividend yield based on our expectation for FY26 regular dividends of $0.96, compared to a current 7.0% dividend yield relative to the current share price. Should the company continue to realize periodic equity gains and distribute proceeds to shareholders, the actual dividend yield would be in excess of the current regular dividend yield. A peer group of externally-managed BDCs currently trade a median P/NAV of 82% and with a median dividend yield of 13.7%. Based on the current dividend yield, should shares reach our price target, shareholders could realize a total return of 14% over the next twelve months."

For an analyst ratings summary and ratings history on Gladstone Investment Corporation click here. For more ratings news on Gladstone Investment Corporation click here.

Shares of Gladstone Investment Corporation closed at $13.69 yesterday.

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