Bullish indicating open at $55-$60, IPO prices at $37
Investing.com - Keefe, Bruyette & Woods raised its price target on Barings BDC Inc. (NYSE:BBDC) to $10.00 from $9.50 while maintaining a Market Perform rating.
The research firm cited one-time income that helped BBDC beat net investment income (NII) estimates, specifically pointing to elevated dividend and fee income during the quarter. The company maintains a notable 10.8% dividend yield and has raised its dividend for 5 consecutive years, as highlighted in InvestingPro’s analysis.
Barings BDC terminated the MVC Capital (NYSE:MVC) Services Agreement (CSA) during the quarter as previously announced, though the firm’s net asset value (NAV) declined due to net portfolio depreciation.
Keefe, Bruyette & Woods noted that credit quality improved slightly and non-accruals remain low compared to the business development company (BDC) industry average.
The firm expects slightly higher dividend and fee income to cover BBDC’s dividend this year, but projects that net investment income coverage will fall below the dividend in 2026, leading to raised 2025 estimates but slightly reduced 2026 projections.
In other recent news, Barings BDC Inc reported its second-quarter 2025 earnings, surpassing analyst expectations. The company achieved an earnings per share (EPS) of $0.28, outperforming the projected $0.258. Additionally, Barings BDC reported revenue of $74.4 million, which exceeded the anticipated $66.19 million by 12.4%. These results reflect a positive earnings surprise of 8.53%. The company’s strong financial performance has drawn attention from investors and market analysts. The earnings announcement has been a significant development for Barings BDC, highlighting its financial stability and growth. As these results become more widely known, they may influence future analyst projections and investor decisions.
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