UPDATE: Deutsche Bank Initiates Fifth Street Senior at Buy on Positive Outlook

In a report published Tuesday, Deutsche Bank analyst Stephen Laws initiated coverage on Fifth Street Senior FSFR with a Buy rating and $16.50 price target.

In the report, Deutsche Bank noted, “We are initiating coverage of Fifth Street Senior Floating Rate (FSFR) with a Buy rating, as we expect the company to invest IPO proceeds in newly originated, senior floating-rate debt investments. Given the floating-rate focus of the portfolio, we expect ROEs to expand should LIBOR increase. Our target of $16.50 per share is based on shares trading at a 10% premium to post-deal NAV. As the portfolio ramps, we expect shares to move towards our target.”

Fifth Street Senior closed on Monday at $14.18.