Saratoga Investment Corp (SAR) Receives a Buy from B.Riley FBR

By Ryan Adsit

B.Riley FBR analyst Timothy P. Hayes reiterated a Buy rating on Saratoga Investment Corp (SARResearch Report) yesterday and set a price target of $26. The company’s shares opened today at $23.10.

Hayes wrote:

“We reiterate our Buy rating and $26 price target on shares of Saratoga Investment Corp. (SAR) following the company’s declaration of its F4Q19 dividend of $0.54 per share, which is an increase from $0.53 per share in the prior quarter and marks the company’s eighteenth consecutive quarter of dividend increases. Reflecting a strong forward pipeline and an improved liquidity position, following a recent $17M notes offering, we believe Saratoga has the resources to continue growing the portfolio and NII, especially as the company continues to increase leverage, which should support strong ROEs and prolong the attractive dividend growth story that, we expect, will continue throughout FY20. We highlight a potential 21% total return opportunity from current levels, which includes a 9.1% dividend yield, based on our FY19 dividend estimate of $2.10 per share.”

According to TipRanks.com, Hayes is a 4-star analyst with an average return of 10.2% and a 84.0% success rate. Hayes covers the Financial sector, focusing on stocks such as Capital Southwest Corp, Cherry Hill Mortgage, and Ellington Financial.

Saratoga Investment Corp has an analyst consensus of Moderate Buy, with a price target consensus of $26.

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The company has a one-year high of $28.30 and a one-year low of $18.60. Currently, Saratoga Investment Corp has an average volume of 30.56K.

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Saratoga Investment Corp. is a specialty finance company, which engages in the provision of financing solutions. Its portfolio includes investments in leveraged loans issued by middle market companies. The company was founded on March 21, 2007 and is headquartered in New York, NY.