Bank of America Reiterates Neutral Rating on Apollo Investment Following FYQ1'14 EPS Report

In a report published Thursday, Bank of America analyst Kenneth Bruce reiterated a Neutral rating and $9.00 price target on Apollo Investment AINV.

In the report, Bank of America noted, “AINV reported FYQ1'14 operating EPS of $0.25, above our $0.20 estimate and Street consensus at $0.20, driven by higher investment income offset by yield compression. Higher dividend income and Other income helped fuel the beat vs. our forecast. AINV's portfolio appreciated nicely and investment activity was robust, with gross fundings reaching their second highest level ever. At the same time, the portfolio yield fell after being stable the last three quarters. Net asset value (NAV) also declined to $8.16 from $8.27, in part due to a $96M realized loss. AINV's FYQ1'14 results show some nice progress, given the healthy investment activity, portfolio growth and better credit, but we remain concerned about falling asset yields. Maintain Neutral.”

Apollo Investment closed on Wednesday at $8.05.