Barings BDC’s Price Target Cut to $10 From $11 at Oppenheimer
Oppenheimer analysts lowered their price target on Barings BDC, Inc. (NYSE:BBDC) to $10 from $11, noting they estimate the company’s current share price of $8.23 is pricing in $330 million (14.2% of its portfolio) of credit losses, which the analysts believe is too high.
In a recession, the analysts estimate losses could range from $156 million (6.7%) to $230 million (9.9%). The analysts suspect that investors are overestimating the loss because Barings does not publish its internal ratings on its portfolio.
The analysts raised their equity discount rate from 9.25% to 10.00% to reflect this greater level of uncertainty and risk, which resulted in a price target cut.
| Symbol | Price | %chg |
|---|---|---|
| V.BA | 24625 | 0.3 |
| MA.BA | 21100 | -0.95 |
| AXP.BA | 26875 | -0.37 |
| MFIN.JK | 3060 | -1.31 |
Barings BDC’s Price Target Cut to $10 From $11 at Oppenheimer
Oppenheimer analysts lowered their price target on Barings BDC, Inc. (NYSE:BBDC) to $10 from $11, noting they estimate the company’s current share price of $8.23 is pricing in $330 million (14.2% of its portfolio) of credit losses, which the analysts believe is too high.
In a recession, the analysts estimate losses could range from $156 million (6.7%) to $230 million (9.9%). The analysts suspect that investors are overestimating the loss because Barings does not publish its internal ratings on its portfolio.
The analysts raised their equity discount rate from 9.25% to 10.00% to reflect this greater level of uncertainty and risk, which resulted in a price target cut.
