Analysts Conflictied on These Financial Names: Hercules Technology Growth Capital (NYSE: HTGC), On Deck Capital (NYSE: ONDK) and Lexington Realty (NYSE: LXP)By Austin Angelo
Analysts have been eager to weigh in on the Financial sector with new ratings on Hercules Technology Growth Capital (NYSE: HTGC), On Deck Capital (NYSE: ONDK) and Lexington Realty (NYSE: LXP).
Hercules Technology Growth Capital (NYSE: HTGC)
“HTGC reported 3Q16 NOI of $0.32 exceeding our and the Street’s $0.31 estimate given elevated repayments, fee income and strong yields. While 4Q16 QTD deployment has been slow, we anticipate strong growth post- election volatility as HTGC’s pipeline remains robust and repayment activity has subsided. NAV increased >2% QoQ to $9.86 given equity asset appreciation while QTD credit has improved. Maintain Buy rating and $15 PT. 3Q16 results versus our forecast. HTGC reported NOI of $0.32 versus our $0.31 estimate, flat QoQ. The quarter looks positive as the company beat our revenues by $1.5M on higher than forecast fee income. Effective yields increased 20 bps sequentially while core portfolio yields appear to be stabilizing north of 13%. Net investment income of $23.8M also was ahead of our $22.7M forecast, as operating expenses were also modestly below our forecast as HTGC’s efficiency ratio improved from 45% to 36% YoY. Calculated earning asset yields were stable QoQ at 12.2%. HTGC’s investment portfolio grew 15% YoY to $1.32B, modestly shy of our forecast given the elevated repayment activity in the quarter – although we highlight this contributed to greater than forecast fee income in the quarter. On the call, management guided towards strong 4Q16 portfolio growth (net growth of $75M-$100M) given a strong pipeline which it intends to originate post-election volatility. Credit remains fairly consistent as the number of companies on non-accrual was flat QoQ, and while the level of non-accruals increased, we believe two assets on non-accrual are set to repay at par in 4Q16.”
According to TipRanks.com, Hecht is a 4-star analyst with an average return of 2.2% and a 50.0% success rate. Hecht covers the Financial sector, focusing on stocks such as Pennantpark Investment Corp., Consumer Portfolio Services, and Discover Financial Services.
Hercules Technology Growth Capital has an analyst consensus of Moderate Buy, with a price target consensus of $15.
On Deck Capital (NYSE: ONDK)
According to TipRanks.com, Kelly is a top 100 analyst with an average return of 25.6% and a 61.1% success rate. Kelly covers the Technology sector, focusing on stocks such as TripAdvisor Inc., LendingClub Corp, and Alphabet Inc.
Currently, the analyst consensus on On Deck Capital is Hold and the average price target is $5.97, representing a 46.0% upside.
In a report issued on October 31, BTIG also reiterated a Hold rating on the stock.
Lexington Realty (NYSE: LXP)
In a report released yesterday, Jonathan Petersen from Jefferies reiterated a Hold rating on Lexington Realty (NYSE: LXP), with a price target of $10.50. The company’s shares closed yesterday at $9.34.
“3Q16 FFO/sh of $0.28 was 2c/1c ahead of Jef/Street estimates. Guidance was increased due to a lower than expected cap rate on dispositions.”
According to TipRanks.com, Petersen is a 3-star analyst with an average return of 1.2% and a 44.3% success rate. Petersen covers the Financial sector, focusing on stocks such as Government Properties Income Trust, Easterly Government Properties, and First Industrial Realty Trust.
Lexington Realty has an analyst consensus of Hold, with a price target consensus of $10.