Deutsche Maintains Buy On Capitala, Raises Target Price To $16.25

Deutsche Bank reiterated its Buy rating on Capitala Finance Corp CPTA and lifted the price target on shares to $16.25 from $14.75, following the company's Q2 results announcement.

Capitala reported 2Q16 NII of 47c per share, which was in line with the analysts' estimate.

"Given an incentive fee waiver should NII drop below the dividend, we expect CPTA to continue covering the current quarterly dividend of 47c per share," wrote Deutsche Bank, adding that the price target update was based on the increase to their target multiple to 100 percent of NAV from 90 percent.

The analysts maintained their NII/dividend estimates of $1.88/$1.88 per share and $1.88/$1.88 per share for 2016 and 2017, respectively.