萨拉托加投资因信贷压力而削减奥本海默的投资

2024-05-08 23:21

Saratoga Investment (NYSE:SAR) stock slipped 1.1% in Wednesday morning trading after Oppenheimer downgraded the stock to Perform from Outperform due to recent credit stress.
The company had three investments on non-accrual, flat from the prior quarter, and currently has 1.7% of its total portfolio rated yellow or below, Oppenheimer analyst Mitchel Penn said in a note to clients. Its collateralized loan obligation has 7.6% of its portfolio rated yellow or below, he added.
The firm's two-year average return on equity of 4.9% reflects the credit stress, the analyst said. That compares with Saratoga's (SAR) six-year average ROE of 10.4% and four-year average ROE of 7.2%.
"We estimate SAR's current loss-adjusted book value range is $20.75 to $23.70," Penn wrote. "With the stock trading around $23.55, this implies that the market is pricing in 4.3% losses from a potential recession."
The Perform rating on Saratoga (SAR) aligns with the SA Quant rating of Hold and diverges from the average Wall Street rating of Buy.

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