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GSV Capital Has 45% Upside: Barrington

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GSV Capital Has 45% Upside: Barrington
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In a report issued Monday, Barrington Research analysts Alexander Paris and Joe Janssen take a look at GSV Capital Corp (NASDAQ: GSVC) following last Tuesday’s earnings call, in which the company reported a record net asset value (NAV) of $15.72 per share, up from $15.66 per share registered in the previous quarter.

Portfolio Update

As of June 30, GSV, a micro-cap investment company, owned positions in 52 portfolio companies (48 private and four public). The aggregate fair value of these stakes surpassed $390 million. Investments were allocated as follows:

  • 35.4 percent to the education technology industry
  • 32.1 percent to cloud computing and big data companies
  • 15.3 percent to social mobile equities
  • 10.4 percent to marketplaces operators
  • 5.8 percent to sustainability businesses

The top ten investments in the company’s portfolio -- excluding Treasuries -- accounted for approximately 57.4 percent of the total portfolio’s fair value and were allocated:

  • 12.5 percent to Palantir Technologies, Inc.
  • 9.8 percent to 2U Inc (NASDAQ: TWOU)
  • 7.7 percent to Dropbox, Inc.
  • 7.4 percent to Twitter Inc (NYSE: TWTR)
  • 3.7 percent to Coursera, Inc.
  • 3.6 percent to Solexel, Inc.
  • 3.6 percent to PayNearMe, Inc.
  • 3.2 percent to SugarCRM, Inc.
  • 3.0 percent to Dataminr, Inc.
  • 2.9 percent to Avenues Global Holdings, LLC

Recommendation

At current prices, GSV’s stock is trading at a 40 discount to its stated net asset value. Although most investment companies trade at a discount, this one is rather large. Analysts at Barrington believe these shares should trade at a 10 to 15 percent discount to the company’s NAV.

Consequently, the firm reiterates an Outperform rating on the stock, establishing a price target of $13.75. This implies an upside of more than 45 percent from current levels.

Latest Ratings for GSVC

DateFirmActionFromTo
May 2016WunderlichMaintains
Feb 2016Northland SecuritiesMaintainsOutperform
Jan 2016JMP SecuritiesDowngradesOutperformMarket Perform

View More Analyst Ratings for GSVC
View the Latest Analyst Ratings

Posted-In: Alexander Paris Avenues Global HoldingsAnalyst Color Long Ideas Price Target Reiteration Analyst Ratings Trading Ideas Best of Benzinga

 

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