Wells Fargo Starts Solar Senior Capital (SUNS) at Outperform, Strongly Position Following Recent IPO

Wells Fargo initiates coverage on shares of Solar Senior Capital (NASDAQ: SUNS) with an Outperform rating and a valuation range of $21-$22.

The firm reports that its Outperform rating is based on a strong expected 2011/2012 earnings/dividend ramp, opportunity to leverage its balance sheet, and no legacy credit quality issues.

SUNS recent blind pool IPO of $20 per share raised the company $171 million in net proceeds, this is combined with its $210 million credit facility.

Wells Fargo's 2011 and 2012 NOI estimates are $0.88 and $1.75. The estimates reflect 2011/2012 net portfolio growth of $250/$300 million.

The company's investment strategy to invest at least 80% of its net assets in senior loans is liked by the firm as it believes that SUNS has a robust pipeline of opportunities.

For more ratings news on Solar Senior Capital click here and for the rating history of Solar Senior Capital click here.

Shares of Solar Senior Capital closed at $18.95 yesterday.

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