UPDATE: J.P. Morgan Reiterates on Fifth Street Finance Following Dividend Reduction
In a report published Friday, J.P. Morgan analyst Richard Shane reiterated an Overweight rating on Fifth Street Finance Corp. (NASDAQ: FSC), but lowered the price target from $11.00 to $10.00.
In the report, J.P. Morgan noted, “Fifth Street Finance (ticker: FSC) had a disappointing 4QFY2013, with a dividend cut, lower than expected NII/sh, and NAV dilution. The market seems to have recalibrated expectations lower, as shares traded down approximately 7% since reporting earnings. We are lowering our PT to $10, but with a secure 10% dividend yield and shares trading at a slight discount to NAV, we maintain our Overweight rating.”
Fifth Street Finance closed on Wednesday at $9.70.
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