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Analyst Actions: Harvest Capital Credit's Price Target Reduced by Janney to $13.25 From $15, Buy Rating Kept

Harvest Capital Credit ( HCAP ) received a price-target cut from Janney Montgomery Scott after the investment-management company on Tuesday reported weaker-than-expected Q3 results.

The new price target from RBC is $13.25 per share, down from $15 but still above the stock's Tuesday closing price of $12.60. The firm kept its investment rating on the shares at buy.

Tuesday, Harvest Capital Credit reported Q3 net investment income per share of $0.24, down from $0.47 a year earlier and below three analysts' mean estimate according to Capital IQ of $0.38. The company also swung to a net loss of $0.05 per share from a year-earlier net profit of $0.38 per share, while the three analysts had expected net income of $0.37 per share. Total investment income fell to $4.8 million from $5.5 million in the year-earlier period, missing the tree analysts' mean estimate of $5.0 million.

Janney noted to clients that the net investment income of $0.24 per share included costs related to the refinancing of the company's baby bonds; adjusting for those one-time debt costs would put the net investment income at about $0.33 per share, the firm said, noting that would be closer to covering the dividend of $0.34 per share.

The firm is estimating Harvest Capital Credit will expand its portfolio by $32 million to $149 million by the end of 2018, which it sees supporting enough net-investment-income growth to cover the dividend in 2018.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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