WhiteHorse Finance Analyst Cuts Forecast After This fall Outcomes: Dividend Reduce Quickly? – WhiteHorse Finance (NASDAQ:WHF)

Shares of WhiteHorse Finance Inc WHF remained risky after the corporate introduced its fourth-quarter outcomes.

The corporate’s dividend coverage is in focus after its NII (internet curiosity revenue) fell in need of expectations, in keeping with JPMorgan.

The WhiteHorse Finance Analyst: Analyst Melissa Wedel reaffirmed an Underweight score, whereas lowering the worth goal from $9.50 to $9.00.

The WhiteHorse Finance Thesis: The corporate reported its fourth-quarter NII at 34 cents per share. It missed the consensus of 39 cents per share.

NAV (internet asset worth) declined by 3.6% sequentially to $12.31 per share, Wedel stated in a notice.

Try different analyst inventory scores.

Administration declared an everyday quarterly distribution of 38.5 cents per share for the primary quarter, the analyst acknowledged.

She added, nevertheless, that administration indicated they have been nonetheless evaluating the portfolio’s earnings energy within the close to to medium time period, which leaves some doubts in regards to the dividend being decreased, “particularly with $28.4M of spillover revenue remaining after the particular dividend was paid in 4Q.”

The board might also determine to “use spillover revenue to complement NII and assist the dividend at present ranges,” Wedel acknowledged.

“In both state of affairs, we anticipate buyers will stay centered on dividend protection by way of NII and credit score traits with headwinds to a number of growth till dividend protection by way of NII is achieved and NAV stabilizes,” she additional wrote.

Value Motion: Shares of WhiteHorse Finance had declined by 0.6% to $9.98 on the time of publication on Monday.

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