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Buy 'August Opportunity' PennantPark Floating Rate - KBW

Published 08/17/2017, 11:14 AM
© Reuters.  Buy 'August Opportunity' PennantPark Floating Rate - KBW
PFLT
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  • BDCs as a whole are generally poised to benefit from rising interest rates, but PennantPark Floating Rate (NASDAQ:PFLT), more than most, says KBW's Ryan Lynch.
  • He sees an 18% return over the next year - 8% from the dividend, and 10% share price appreciation.
  • The company, he says, has one of the best credit records in the BDC sector, and a low fee structure as well.
  • The stock trades at book value vs. an average 6% premium for other high-quality, senior-secured focused BDCs, says Lynch, and an 11.8 P/E ratio vs. 12.9 for peers.
  • Source: Barron's Amey Stone
  • Now read: PennantPark Floating Rate Capital: 8% Dividend Yield And Monthly Payouts, But There Are Risks


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