National Securities Lowers THL Credit, Inc. (TCRD) Price Target to $11.00

THL Credit, Inc. (NASDAQ:TCRD) had its target price dropped by equities researchers at National Securities from $12.00 to $11.00 in a research report issued to clients and investors on Monday. The firm currently has a “buy” rating on the investment management company’s stock. National Securities’ price objective suggests a potential upside of 17.90% from the stock’s current price.

The analysts wrote, “• For 3Q17, TCRD posted NII/share of $0.34, exceeding our estimate by $0.07/share. The beat versus our estimate was entirely due to the company not earning any incentive fee during the quarter as NAV declined further, albeit by a modest amount.

• Non-accruals at amortized cost decreased to $32.4 million as of 9/30/17 from $46.3 million Q/Q as a result of Aerogroup International being placed on non-accrual status during the quarter and previous non-accrual CRS Reprocessing being restructured.

• The company took further shareholder friendly actions that we applaud. The base management fee will be excluded from being added back to setting the capped incentive fee in the look-back calculation. Additionally, the incentive fee will be calculated on a rolling 12-quarter basis instead of the most recent quarter. Under this new structure, the amount of incentive fees paid under this will never exceed what would have been calculated under the current incentive fee formula (which already has a three-year look-back feature). The incentive fee will be waived in 4Q17 just as it was in 3Q17 and the external manager has agreed to waive up to 25% of incentive fees earned through 2018, if required, to ensure the dividend is covered.

• We are revising our 2017 NII/share estimate to $1.26 from $1.15 and are revising our 2018 NII/share estimate to $1.11 from $1.16.”

Several other research firms have also recently weighed in on TCRD. TheStreet upgraded shares of THL Credit from a “c+” rating to a “b-” rating in a research note on Monday, July 31st. Deutsche Bank AG cut shares of THL Credit from a “buy” rating to a “hold” rating and set a $10.50 target price for the company. in a research note on Tuesday, August 8th. Keefe, Bruyette & Woods reiterated a “hold” rating and issued a $10.50 target price on shares of THL Credit in a research note on Wednesday, August 16th. Maxim Group reiterated a “buy” rating and issued a $11.50 target price on shares of THL Credit in a research note on Friday, November 10th. Finally, ValuEngine upgraded shares of THL Credit from a “hold” rating to a “buy” rating in a research note on Friday, November 10th. Five investment analysts have rated the stock with a hold rating and three have issued a buy rating to the company. THL Credit presently has a consensus rating of “Hold” and an average price target of $10.70.

Shares of THL Credit (TCRD) opened at $9.33 on Monday. The company has a current ratio of 0.20, a quick ratio of 0.20 and a debt-to-equity ratio of 0.50. THL Credit has a fifty-two week low of $8.90 and a fifty-two week high of $10.60. The stock has a market cap of $305.50, a PE ratio of 7.66, a price-to-earnings-growth ratio of 7.54 and a beta of 1.10.

THL Credit (NASDAQ:TCRD) last released its quarterly earnings results on Thursday, November 9th. The investment management company reported $0.34 earnings per share (EPS) for the quarter, beating the Zacks’ consensus estimate of $0.27 by $0.07. THL Credit had a net margin of 23.15% and a return on equity of 10.53%. The company had revenue of $20.10 million during the quarter, compared to analysts’ expectations of $19.74 million. During the same period in the prior year, the company earned $0.32 earnings per share. The business’s quarterly revenue was down 6.9% compared to the same quarter last year. equities research analysts predict that THL Credit will post 1.24 EPS for the current fiscal year.

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Institutional investors and hedge funds have recently made changes to their positions in the business. JPMorgan Chase & Co. bought a new position in THL Credit during the second quarter worth about $105,000. Macquarie Group Ltd. bought a new position in THL Credit during the third quarter worth about $104,000. Cetera Investment Advisers bought a new position in THL Credit during the second quarter worth about $136,000. CIBC World Markets Inc. bought a new position in THL Credit during the second quarter worth about $150,000. Finally, Crescent Grove Advisors LLC bought a new position in THL Credit during the second quarter worth about $318,000. Hedge funds and other institutional investors own 45.17% of the company’s stock.

About THL Credit

THL Credit, Inc is an externally managed, non-diversified closed-end management investment company. The Company’s investment objective is to generate both current income and capital appreciation, primarily through investments in privately negotiated debt and equity securities of lower middle market companies.

Analyst Recommendations for THL Credit (NASDAQ:TCRD)

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