UPDATE: Citigroup Initiates WhiteHorse Finance at Buy on Yield, Valuation

Citigroup initiated coverage on WhiteHorse Finance

with a Buy rating and a $16 price target. Citigroup commented, "While peers have cited looser credit standards and tighter spreads over the last 12 months, WHF should be able to maintain attractive yields given their small-cap, private company focus. We also like that WHF is able to pay a dividend out of the box, given the loans H.I.G. contributed at the IPO. In terms of valuation, WHF is trading at 0.96x pro forma IPO book value, versus peers in the 1-1.1x range. And the stock offers an attractive dividend yield of ~10%." WhiteHorse Finance closed at $14.78 on Friday.