UPDATE: Keefe, Bruyette & Woods Reiterates Market Perform Rating, Raises PT on BlackRock Kelso Capital Corporation Following Solid Quarter Report

In a report published Tuesday, Keefe, Bruyette & Woods analyst Greg Mason reiterated a Market Perform rating on BlackRock Kelso Capital Corporation (NASDAQ: BKCC), and raised the price target from $9.75 to $10.25.In the report, Keefe, Bruyette & Woods noted, “Overall we thought it was a good quarter. Earnings missed because of lower-than-expected prepayment income but commentary on two big portfolio equity sales is positive and should increase earnings in 2015. Book value increased on portfolio equity gains and in 2014 BKCC should sell two large equity positions representing ~10% of the portfolio, which is currently generating no income, that can be redeployed into new debt investments. Yields on the portfolio improved and credit quality is good. Our 2015 estimates increase as the equity sales are redeployed into new loans. Our TP increases to $10.25 from $9.75 due to the equity exits.”BlackRock Kelso Capital Corporation closed on Monday at $9.47.