Jefferies Issues a Buy Rating on Capitala Finance

By Ryan Adsit

Jefferies analyst John Hecht reiterated a Buy rating on Capitala Finance (NASDAQ: CPTA) today and set a price target of $17. The company’s shares closed yesterday at $14.01.

According to TipRanks.com, Hecht is a 5-star analyst with an average return of 11.8% and a 71.6% success rate. Hecht covers the Financial sector, focusing on stocks such as Consumer Portfolio Services, Discover Financial Services, and Pennantpark Investment Corp.

Capitala Finance has an analyst consensus of Moderate Buy, with a price target consensus of $15.33.

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Capitala Finance Corp. is a business development company that invests in lower middle-market companies located in the US. The fund focuses on companies with revenues of more than $15 million, EBITDA of more than $5 million, positive cash flow, strong margins, an established & defensible market position and proven management teams. It targets companies operating in the fields of business services, general industrial, consumer products, restaurant & food, healthcare, information technology, and energy services. It provides financing in the form of mezzanine, subordinated debt, one-stop & uni-tranche structures, first & second-lien loans and equity co-investments for leveraged buyouts, management buyouts, recapitalizations and growth capital financings with an investment size ranging from $5 – $30 million per transaction.