- Continuing to rate Prospect Capital (PSEC -1.4%) a Buy while cutting the price target to $10.50 (a near-40% upside from the current price), analyst Merrill Ross wonders if the hoped-for spinoff of three entities makes the best sense. "Regulatory delays and market reception have not enabled these transactions," she writes. "We think that PSEC might consider selling some of these businesses at a growth multiple, and plow the gains back into the core business of providing senior secured debt to companies that lack access to the capital markets."
- "We believe the company has multiple avenues it is pursuing that can enhance earnings and create value for shareholders… If the company is successful in launching the spincos or selling selected controlled entities at a growth multiple, our price target could prove conservative."