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.

Market News and Data brought to you by Benzinga APIs
Comments
Loading...
Posted In: Analyst ColorInitiationAnalyst RatingsDeutsche BankStephen Laws
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!