National Securities upgraded shares of TPG Specialty Lending (NYSE:TSLX) from a neutral rating to a buy rating in a research note published on Monday morning, Marketbeat Ratings reports. National Securities currently has $21.00 price objective on the financial services provider’s stock, up from their prior price objective of $20.00.
“• TPG posted NII/share of $0.45, 3 cents shy of our estimate due to lighter fee income than we had anticipated. The decline in fee income was largely attributable to a reduction in syndication fees and prepayment-related income and the company expects repayment activity to slow in the coming quarters which should serve to augment the portfolio.
• The earnings were well above the $0.39/share regular dividend and the company again declared a special dividend of $0.03/share to be payable in 1Q18. We continue to expect special dividends to be declared as the company’s run rate of earnings remains significantly above the conservatively set base dividend level.
• The company had record gross originations of $1.07 billion during 4Q17, largely consisting of a $400 million first lien loan to Northern Oil & Gas (NYSE: NOG – NEUTRAL – $2.05) and a $550 million ABL (asset-based lending) facility to iHeart Communications (OTC: IHRT – NR – $0.52). Out of these gross originations, $770 million were allocated to affiliated funds via co-investment or syndicated out.
• The iHeart allocation to TSLX specifically is $111.6 million at cost and underscores the diversity of TPG’s platform and the company’s ability to provide borrowers with complex capital structures and provide certainty of closing, both leading to strong pricing power for TSLX in a very challenging loan market.
• We are revising our 2018 NII/share estimate to $1.93 from $1.95 and are rolling out our fiscal 2019 NII/share estimate of $1.92. We expect iHeart to prepay (3-year term) in 3Q18 and boost earnings for the full year of 2018. We are upgrading shares to BUY from NEUTRAL and increasing our price target to $21 from $20. TSLX continues to remain one of the best run BDCs in the industry, in our opinion, and the recent selloff in shares presents a buying opportunity as we see it. ,” National Securities’ analyst commented.
Other research analysts have also recently issued reports about the stock. BidaskClub cut shares of TPG Specialty Lending from a sell rating to a strong sell rating in a research note on Thursday, November 9th. SunTrust Banks reissued a buy rating and set a $21.00 price objective on shares of TPG Specialty Lending in a research note on Friday, February 23rd. JMP Securities dropped their price objective on shares of TPG Specialty Lending from $22.00 to $21.50 and set an outperform rating for the company in a research note on Friday, February 23rd. Zacks Investment Research raised shares of TPG Specialty Lending from a hold rating to a buy rating and set a $23.00 price objective for the company in a research note on Friday, November 10th. Finally, Ladenburg Thalmann Financial Services raised shares of TPG Specialty Lending from a neutral rating to a buy rating in a research note on Thursday, February 22nd. One analyst has rated the stock with a sell rating, one has assigned a hold rating and four have given a buy rating to the company’s stock. The stock currently has a consensus rating of Buy and an average target price of $21.63.
TPG Specialty Lending (NYSE:TSLX) last issued its quarterly earnings data on Wednesday, February 21st. The financial services provider reported $0.45 earnings per share for the quarter, hitting the Zacks’ consensus estimate of $0.45. TPG Specialty Lending had a net margin of 53.80% and a return on equity of 12.45%. The business had revenue of $48.80 million during the quarter, compared to analysts’ expectations of $49.58 million. During the same period last year, the company posted $0.47 EPS. The company’s revenue was down 1.8% on a year-over-year basis. research analysts predict that TPG Specialty Lending will post 1.82 earnings per share for the current year.
The company also recently announced a special dividend, which will be paid on Friday, March 30th. Shareholders of record on Wednesday, February 28th will be paid a $0.03 dividend. The ex-dividend date of this dividend is Tuesday, February 27th. This represents a yield of 8.52%. TPG Specialty Lending’s payout ratio is currently 83.87%.
Hedge funds have recently added to or reduced their stakes in the business. Steward Partners Investment Advisory LLC purchased a new stake in TPG Specialty Lending in the 4th quarter worth approximately $104,000. Global X MANAGEMENT CO LLC grew its stake in TPG Specialty Lending by 37.9% in the 3rd quarter. Global X MANAGEMENT CO LLC now owns 9,454 shares of the financial services provider’s stock worth $198,000 after acquiring an additional 2,600 shares during the period. IFG Advisory LLC purchased a new stake in TPG Specialty Lending in the 4th quarter worth approximately $209,000. Nationwide Fund Advisors purchased a new stake in TPG Specialty Lending in the 3rd quarter worth approximately $256,000. Finally, Texas Yale Capital Corp. purchased a new stake in TPG Specialty Lending in the 4th quarter worth approximately $278,000. 62.89% of the stock is owned by hedge funds and other institutional investors.
WARNING: “TPG Specialty Lending (TSLX) Rating Increased to Buy at National Securities” was posted by Ticker Report and is the property of of Ticker Report. If you are viewing this article on another site, it was illegally copied and reposted in violation of US & international trademark & copyright laws. The correct version of this article can be read at https://www.tickerreport.com/banking-finance/3229626/tpg-specialty-lending-tslx-rating-increased-to-buy-at-national-securities.html.
TPG Specialty Lending Company Profile
TPG Specialty Lending, Inc is an externally managed, closed-end, non-diversified management investment company. The Company is a specialty finance company focused on lending to middle-market companies. It seeks to generate current income primarily in the United States-domiciled middle-market companies through direct originations of senior secured loans and originations of mezzanine and unsecured loans and investments in corporate bonds and equity securities.
Receive News & Ratings for TPG Specialty Lending Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for TPG Specialty Lending and related companies with MarketBeat.com's FREE daily email newsletter.