Wunderlich Securities Upgrades Horizon Technology Finance On Potential For Dividend Coverage And NAV Appreciation In 2H15

In a report published Thursday, Wunderlich Securities analyst Merrill Ross upgraded the rating on Horizon Technology Finance Corp. HRZN from Hold to Buy, and raised the price target from $14.50 to $15.00. In the report, Wunderlich Securities noted, "We are upgrading our rating on the shares of Horizon Technology Finance (HRZN) from Hold to Buy. We think the company is close to covering the $0.115/share monthly dividend with core, recurring net investment income. We expect that the 10 public life sciences portfolio companies in which HRZN holds warrants will advance through clinical trials in 2015, creating what could be significant increases in the FMV of those warrants, driving NAV upward. The company has improved credit quality without damaging NAV and has lowered its cost of funds. Moreover, liquidity is ample and, with conservative leverage, we believe the portfolio can increase by ~16% to $238mm in 2015, driving earnings and value creation. We are raising our price target to $15, which could prove to be in line with forward NAV." Horizon Technology Finance closed on Wednesday at $14.00.