Bank of America Upgrades Apollo Investment Corp. to Neutral (AINV)
Apollo Investment Corp. (NASDAQ:AINV) was upgraded by stock analysts at Bank of America to a “neutral” rating in a report issued on Tuesday. The firm currently has a $8.75 price objective on the stock, down from their previous price objective of $9.00. Bank of America’s target price would suggest a potential upside of 2.58% from the company’s current price.
The analysts wrote, “We believe Apollo Investment (AINV) is fairly valued at 1.0x NAV given our revised profitability outlook. Near term balance sheet growth is governed by leverage constraints since the capital market is largely closed to the BDC sector given current valuations. That said, we think AINV can still generate mid-single-digit revenue growth from balance sheet optimization since roughly 30% of the portfolio is lower yielding and/or liquid secondary investments. “As AINV rotates the portfolio and replaces these subscale assets with higher yielding primary investments, we think the company can mitigate yield compression and modestly grow the top line. Though AINV’s management team has made good progress the last couple of years restructuring the balance sheet, we do not expect earnings growth, despite the benefit from fee concessions, in this somewhat sluggish environment. Reiterate Neutral rating.”
A number of other firms have also recently commented on AINV. Analysts at Keefe, Bruyette & Woods upgraded shares of Apollo Investment Corp. from a “market perform” rating to an “outperform” rating in a research note on Tuesday. They now have a $9.50 price target on the stock, up previously from $9.00. Finally, analysts at SunTrust reiterated a “neutral” rating on shares of Apollo Investment Corp. in a research note on Wednesday, May 21st. They now have a $8.50 price target on the stock. Four analysts have rated the stock with a hold rating and four have assigned a buy rating to the company’s stock. The stock presently has an average rating of “Buy” and an average target price of $8.92.
Shares of Apollo Investment Corp. (NASDAQ:AINV) opened at 8.53 on Tuesday. Apollo Investment Corp. has a 1-year low of $7.28 and a 1-year high of $9.21. The stock has a 50-day moving average of $8.17 and a 200-day moving average of $8.44.
Apollo Investment Corp. (NASDAQ:AINV) last posted its quarterly earnings results on Tuesday, May 20th. The company reported $0.22 earnings per share for the quarter, beating the analysts’ consensus estimate of $0.21 by $0.01. During the same quarter last year, the company posted $0.21 earnings per share. Analysts expect that Apollo Investment Corp. will post $0.88 EPS for the current fiscal year.
The company also recently announced a quarterly dividend, which is scheduled for Monday, July 7th. Investors of record on Friday, June 20th will be paid a dividend of $0.20 per share. This represents a $0.80 annualized dividend and a dividend yield of 9.38%. The ex-dividend date is Wednesday, June 18th.
Apollo Investment Corporation (NASDAQ:AINV) is a closed-end, non-diversified management investment company that has elected to be treated as a business development company (BDC).
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