UPDATE: J.P. Morgan Downgrades WhiteHorse Finance on Fair Valuation

In a report published Tuesday, J.P. Morgan analyst Richard Shane downgraded WhiteHorse Finance WHF from Overweight to Neutral, but reiterated the $15.50 price target.

In the report, J.P. Morgan noted, “We lower our rating to Neutral, as we believe the BDC is fairly valued at 1.03x NAV. WHF has a differentiated self-origination strategy, which may lead WHF to experience less yield compression vs. peers. WHF's access to H.I.G.'s proprietary small cap deal sourcing network enables it to originate deals that are less liquid and less competitive to source than large and mid-cap loans in the marketplace. Given the BDC's short operating history, we believe the company is fairly valued at or above 1.0x book value.”

WhiteHorse Finance closed on Monday at $15.81.