Main Street Capital sees Q2 ROE above 18% in preliminary results
MAIN•Outlook
- Company did not provide specific guidance or outlook for future quarters or full year
Preliminary Q2 results
- US business development firm's preliminary Q2 annualized ROE exceeds 18%
- Preliminary NAV per share rises, driven by fair value gains in investment portfolios
- Results are preliminary and subject to quarter-end closing and review procedures
Result drivers and analyst coverage
- Fair value appreciation - Net fair value appreciation in lower middle market and private loan investment portfolios drove NAV per share increase, per CEO Dwayne L. Hyzak
- Portfolio activity - Net increase in private loan portfolio cost basis and net decrease in lower middle market portfolio cost basis due to investment activity and repayments
- Non-accruals low - Investments on non-accrual status comprised 1.1% of portfolio at fair value, indicating limited credit issues
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 2 "strong buy" or "buy", 7 "hold" and no "sell" or "strong sell". The average consensus recommendation for the investment banking & brokerage services peer group is "buy." Wall Street's median 12-month price target for Main Street Capital Corp is $58.50, about 9.5% above its July 15 closing price of $53.41. The stock recently traded at 14 times the next 12-month earnings vs. a P/E of 13 three months ago.
