FBR Capital Reiterates a 'Market Perform' on Apollo Investment (AINV); Model & Price Target Update

FBR Capital reiterates a 'Market Perform' on Apollo Investment (NASDAQ: AINV), PT increased from $10 to $11.

FBR analyst says, "We maintain our FY11 NOI estimate at $0.98 and are reducing our prior FY12 NOI estimate to $1.00 (from $1.07). Our revised NOI outlook primarily reflects the drag from Apollo's recently issued convertible debt (5.75% coupon replacing draw on its revolver at L + 300 bps) as well as lower net interest income from lower portfolio balances. We expect that AINV will continue to maintain its $0.28 quarterly dividend run-rate given more than $0.30 of undistributed income remaining."

"We are reducing our respective 4Q(March)11 and FY12 NOI estimates to $0.24 (from $0.26) and $1.00 (from $1.07) to reflect: (1) higher interest costs related to the $200 million convertible debt issued on January 26, and (2) lower portfolio balances primarily from $481 million of paydowns in 3Q as well as continued repayments/seasonal slowness in 4Q(March)11."

For more ratings news on Apollo Investment click here and for the rating history of Apollo Investment click here.

Shares of Apollo Investment closed at $11.36 yesterday.

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