Bain Capital Specialty Finance Q3 net investment income falls q-o-q

Overview

• US specialty lender's Q3 net investment income per share was $0.43, down from prior qtr

• Net asset value per share fell to $16.49 from $16.65 in prior qtr

• Company declared Q4 dividend of $0.42 per share, unchanged from prior qtr

Outlook

• Company sees higher yields as floating rate loans reset and new deals fund at attractive spreads

• Company expects current market environment to create opportunities in the core middle market

Result Drivers

• FLOATING RATE LOANS - Co said higher yields from floating rate loans as rates reset contributed to results

• PORTFOLIO HEALTH - Co said its diversified portfolio of borrowers remains healthy, per CEO Michael Ewald

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is no "strong buy" or "buy", 4 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the investment management & fund operators peer group is "buy."

• Wall Street's median 12-month price target for Bain Capital Specialty Finance Inc is $12.75, about 16.2% above its November 9 closing price of $10.97

• The stock recently traded at 8 times the next 12-month earnings vs. a P/E of 8 three months ago

Reuters Recommended Reads

• Nov 9 - Crescent Capital BDC Q3 net investment income falls

• Nov 9 - WhiteHorse Finance Q3 investment income rises 3%, declares distributions

• Nov 9 - Gladstone Investment Q2 investment income falls on lower success fees

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)