UPDATE: Wunderlich Securities Initiates Coverage On Fifth Street Finance Corp. As Value Creation Is On The Uptick

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

with a Buy rating and $10.50 price target. In the report, Wunderlich Securities noted, “We are initiating coverage of Fifth Street Capital Corp. (FSC) with a Buy rating and a price target of $10.50. FSC lends to and invests in small and mid-sized companies, primarily through private equity (PE) sponsors. Many BDCs offer financing alternatives to PE sponsors; we believe that FSC has differentiated itself by offering a relatively large investment size and flexibility. While FSC does participate in select widely syndicated credits, its investments range in size from $10mm to $100mm, and for small to mid-sized companies with annual revenues between $25mm and $250mm, FSC can frequently meet the capital needs of its portfolio companies with uniquely tailored capital products.” Fifth Street Finance Corp. closed on Wednesday at $9.87.