UPDATE: Wunderlich Securities Initiates Coverage on Prospect Capital Corporation with Hold Rating, $12 PT as Attractive Yield Supports Positive Outlook

In a report published Thursday, Wunderlich Securities analyst Merrill Ross initiated coverage on

with a Hold rating and $12.00 price target. In the report, Wunderlich Securities noted, “We are initiating coverage of Prospect Capital Corporation (PSEC) with a Hold rating and a $12 target. PSEC benefits from its size and its strong and flexible balance sheet, as well as from the intellectual capital housed at its external manager. We like the positive momentum at several of the opportunistic control investments, and believe that the company has demonstrated its ability to allocate capital to businesses that may be out of favor, but that have had good upside. We think the ATM equity issuance creates an overhang on the stock, but we believe that investors who chose to add to positions should participate in these offerings, which have historically signaled opportunistic portfolio expansion.” Prospect Capital Corporation closed on Wednesday at $11.11.