Wunderlich Securities Sees Unique Drivers Of Value Creation For Garrison Capital

In a report published Friday, Wunderlich Securities analyst Merrill Ross reiterated a Buy rating and $16.50 price target on Garrison Capital GARS. In the report, Wunderlich Securities noted, “Garrison Capital Inc. (GARS) reported NII at the higher end of the range of pre-released summary information, coming in at $0.36 versus our $0.34 estimate. Earnings per share including realized and unrealized gains was $0.54 and exceeded quarterly distributions, which resulted in NAV accretion to $15.64/sh, as we had expected. In this report, we parsed the statement of investments quarter over quarter to identify new investments, paydowns, and unrealized appreciation. We continue to believe that our $16.50 target will be supported by a dividend that we expect to be covered by NII and further appreciation of GARS' equity investment.” Garrison Capital closed on Thursday at $14.51.