A number of firms have modified their ratings and price targets on shares of Fifth Street Finance Corp. (NASDAQ: FSC) recently:

  • 8/2/2017 – Fifth Street Finance Corp. was downgraded by analysts at Zacks Investment Research from a “hold” rating to a “sell” rating. According to Zacks, “FIFTH STREET FINANCE CORP. is a specialty finance company that lends to and invests in small and mid-sized companies in connection with an investment by private equity sponsors. Fifth Street Finance Corp.’s investment objective is to maximize its portfolio’s total return by generating current income from its debt investments and capital appreciation from its equity investments. “
  • 7/27/2017 – Fifth Street Finance Corp. was downgraded by analysts at BidaskClub from a “hold” rating to a “sell” rating.
  • 7/20/2017 – Fifth Street Finance Corp. was upgraded by analysts at BidaskClub from a “sell” rating to a “hold” rating.
  • 7/18/2017 – Fifth Street Finance Corp. was upgraded by analysts at National Securities from a “neutral” rating to a “buy” rating. They now have a $7.00 price target on the stock, up previously from $4.00. They wrote, “• Fifth Street Asset Management (NASD: FSAM – NR – $4.20), the external manager of both FSC and Fifth Street Senior Floating Rate (NASD: FSFR – NR – $8.97) has agreed to be acquired by Oaktree Capital Group, LLC (NYSE: OAK – NR – $47.75). The transaction is expected to close in the quarter ended 12/31/17. While both boards have unanimously approved of the transaction, this is still subject to a shareholder vote. We think that the risk of shareholders voting “no” is very, very minimal and would be like a case of Stockholm Syndrome.

    • FSAM has run both public BDCs in a manner that is nothing short of egregious, as we have stated with regards to FSC for quite some time now. Fees have been too high and detached from the severe underperformance of the companies; rather than a credit investor, FSAM has behaved as an asset gatherer to generate fees, as we see it.

    • OAK will lower the base fee to 1.50% from 1.75% and lower the incentive fee on both income and capital gains to 17.5% from 20.0%. Additionally, OAK has $100 billion of AUM as of 3/31/17 and is not going to get rich off the BDCs (like some FSAM executives have) and has no incentive to run the BDCs in an asset gathering fashion, in our opinion.

    • We expect significant multiple expansion as a result of getting rid of FSAM and all board members except for one and having a strong external manager in Oaktree. Accordingly, we are maintaining our fiscal 2017 NII/share estimate of $0.55 and are revising our fiscal 2018 NII/share estimate to $0.54 from $0.50.”
  • 7/18/2017 – Fifth Street Finance Corp. was upgraded by analysts at Deutsche Bank AG from a “hold” rating to a “buy” rating. They now have a $6.00 price target on the stock, up previously from $4.75.
  • 7/17/2017 – Fifth Street Finance Corp. was upgraded by analysts at Zacks Investment Research from a “sell” rating to a “hold” rating. According to Zacks, “FIFTH STREET FINANCE CORP. is a specialty finance company that lends to and invests in small and mid-sized companies in connection with an investment by private equity sponsors. Fifth Street Finance Corp.’s investment objective is to maximize its portfolio’s total return by generating current income from its debt investments and capital appreciation from its equity investments. “
  • 7/17/2017 – Fifth Street Finance Corp. was upgraded by analysts at JMP Securities from a “market perform” rating to an “outperform” rating. They now have a $6.50 price target on the stock.
  • 6/30/2017 – Fifth Street Finance Corp. had its “hold” rating reaffirmed by analysts at Keefe, Bruyette & Woods. They now have a $4.75 price target on the stock.
  • 6/14/2017 – Fifth Street Finance Corp. was downgraded by analysts at TheStreet from a “c-” rating to a “d+” rating.

Fifth Street Finance Corp. (NASDAQ FSC) opened at 5.36 on Monday. The company’s 50-day moving average is $4.73 and its 200-day moving average is $4.63. Fifth Street Finance Corp. has a 52-week low of $3.90 and a 52-week high of $6.32.

Fifth Street Finance Corp. (NASDAQ:FSC) last issued its quarterly earnings data on Wednesday, May 10th. The credit services provider reported $0.13 earnings per share (EPS) for the quarter, missing the Thomson Reuters’ consensus estimate of $0.15 by $0.02. Fifth Street Finance Corp. had a positive return on equity of 8.83% and a negative net margin of 33.60%. The business had revenue of $45.56 million for the quarter, compared to analysts’ expectations of $50.76 million. On average, equities research analysts forecast that Fifth Street Finance Corp. will post $0.56 EPS for the current fiscal year.

Fifth Street Finance Corp. is a specialty finance company. The Company is a closed-end, non-diversified management investment company. The Company acts as a business development company (BDC). The Company’s investment objective is to maximize its portfolio’s total return by generating current income from its debt investments, and capital appreciation from its equity investments.

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