SLR Investment Upgraded to Buy with $16.50 Target ahead of March 13 Dividend
Compass Point upgraded SLR Investment Corp. shares to Buy from Neutral and raised its price target to $16.50 per share, up from $16.25. Shares trade at $14.45, a 21% discount to NAV of $18.26 per share, with a $0.41 quarterly dividend and ex-dividend date on March 13, 2026.
1. Upgrade and Price Target
Compass Point upgraded SLR Investment Corp. from Neutral to Buy and raised its price target to $16.50 per share, up from $16.25, reflecting improved outlook for its specialty finance lending portfolio.
2. Valuation and NAV Discount
SLRC shares trade at $14.45, implying a 21% discount to its NAV of $18.26 per share, highlighting potential upside if asset values or investor sentiment improve.
3. Dividend Details and Ex-Date
The BDC pays a $0.41 quarterly dividend, with the next ex-dividend date set for March 13, 2026, offering an attractive yield of approximately 11.3% at current prices.
4. Rate Environment’s Impact
With the 10-year Treasury yield at 4.15% and the Fed funds rate at 3.75%, borrowing costs have eased, which should support SLR Investment’s senior secured and asset-based lending activities.