Barrington Reiterates On GSV Capital Corp, Despite Performance

GSV Capital Corp GSVC is "significantly undervalued" and provides investors with a ground-floor opportunity in some of the fastest-growing start-ups in the nation, an analyst said Thursday.

Barrington's Jeffrey Houston launched coverage slightly more than a year ago on the closed-end management investment company GSV with a Buy rating and $20 target. Since then, GSV shares have lost 38 percent of their value.

But Houston sees no problem.

Houston reiterated the rating on GSV Thursday, but trimmed his target range about 4.5 percent, to between $14 and $15 a share.

GSV shares closed Wednesday at $9.71, while its net assets were worth $15.17 per share at the end of September, according to Houston.

As of September 30, GSV was invested in 49 companies including Twitter Inc, which represented 23 percent of GSV's net assets.

Other relatively large components of GVS' portfolio include the privately held Palantir at 11 percent, Dropbox at 7 percent, and Coursera and Solexel at 4 percent each.

GSV also has holdings in the recently gone-public 2U Inc., Chegg Inc. and TrueCar Inc.

GSV "provides investors with access to fast-growing and disruptive pre-IPO companies at a discount," Houston said in a research note.