Wells Fargo Upgrades Apollo Investment (AINV) to Outperform; 11.5% Dividend Yield Providing Thru Turnaround

Wells Fargo upgraded Apollo Investment (NASDAQ: AINV) from Market Perform to Outperform, price target range raised from $7.50-8 to $9-9.50.

Wells analyst said, "This upgrade is based on three key points: (1) compelling valuation--AINV trades at 0.85x NAV and an 11.5% dividend yield vs. 0.98x NAV and 9.6% for BDC peers, (2) expected turnaround--we expect new management to slowly improve credit performance as well as suggest shareholder friendly initiatives (i.e. no equity raise below NAV and/or lower management fees) and (3) near-term valuation catalysts—we expect CQ1 2012 NAV to increase to the $8.50 level (based on improving portfolio marks) and we also believe new management will set the record straight regarding a dilutive equity issuance (and state that it has no intention of issuing equity at these prices)."

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

Shares of Apollo Investment closed at $6.94 yesterday.

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