Jefferies Cuts Price Target on Apollo Investment Corp. (AINV) to $7; Reiterates Buy
Jefferies maintained a Buy rating on Apollo Investment Corp. (NASDAQ: AINV), and cut the price target to $7.00 (from $7.50), following the company's 4Q earnings report. AINV reported NOI per share of $0.20, in-line with Jefferies' forecast but down $0.01 sequentially. Total investment income of $85.3M was also below forecasts as a result of portfolio contraction and yield compression as a result of the increase in non-accruals.
Analyst Kyle Joseph commented, "AINV reported F4Q16 NOI of $0.20, in-line with our forecast. Interest income was below our forecast as a result of an uptick in non-accruals, offset by a lower-than-forecast interest expense. While the operating environment is challenging, we believe AINV has various levers to pull to be able to maintain its current dividend and consider the 25%+ discount to NAV attractive. We maintain our Buy rating and modestly reduce our PT as a result of the NAV decline."
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Shares of Apollo Investment closed at $5.35 yesterday.