Wunderlich Securities Sees Prospect Capital As Back On The Hunt For Portfolio Growth

In a report published Tuesday, Wunderlich Securities analyst Merrill Ross reiterated a Buy rating and $13.00 price target on

. In the report, Wunderlich Securities noted, “Buy-rated Prospect Capital (PSEC) reported June quarter NII of $0.25 per weighted average share, falling short of expectations. PSEC had suspended its capital issuance plans when the SEC asserted that restatements were needed to consolidate previously formed wholly-owned holding companies. This matter was resolved without requiring restatement, and PSEC has indicated it will consolidate on a prospective basis certain holding companies. This distraction is now over, and we expect PSEC to be more fully engaged in the business of growing its investment portfolio to create value. Though we are trimming our estimates, we continue to believe the shares can trade to a premium to forward NAV as the company harvests value from its portfolio. Maintain $13 target and Buy rating.” Prospect Capital closed on Friday at $10.31.