Wells Fargo Downgrades Horizon Technology Finance (HRZN) to Market Perform; Valuation Call

Wells Fargo downgraded Horizon Technology Finance (NASDAQ: HRZN) from Outperform to Market Perform with a price target range of $16-$17 (from $16.50-$17.50).

Analyst, Jonathan Bock, said, "In our updated scorecard, HRZN fell out of our Quartile 1 ranking and as a result, we now believe the stock will trade in line with the 8.5-9% estimated BDC earnings yield range...Two primary factors resulted in HRZN's move to Quartile 2: (1) Dividend coverage -- Dividend Coverage from Wells Fargo Adjusted Cash Flow (all three measures) dropped as HRZN continues to pay a dividend in excess of current earnings as well as our adjusted cash flow measures and (2) Non-accrual upside -- HRZN's recent restructuring of Vette Corp now limits the earnings upside related to non-accruals (as this was restructured into a royalty agreement)."

For an analyst ratings summary and ratings history on Horizon Technology Finance click here. For more ratings news on Horizon Technology Finance click here.

Shares of Horizon Technology Finance closed at $16.54 yesterday.

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