U.S. Markets open in 8 hrs 58 mins

UPDATE: Wunderlich Securities Downgrades Horizon Technology Finance As Smaller Portfolio Is Unlikely To Cover Dividend

Dwight Einhorn

In a report published Monday, Wunderlich Securities analyst Merrill Ross downgraded the rating on Horizon Technology Finance (NASDAQ: HRZN) from Buy to Hold, and lowered the price target from $15.00 to $14.50.

In the report, Wunderlich Securities noted, “Horizon Technology Finance (HRZN) released investment activity for the quarter ended June 30, 2014 on July 9. The company experienced an unusual amount of unexpected liquidity events that will contribute to an earnings pop for the quarter, which we think is probably priced into the stock at this point. However, until the company redeploys cash into earning assets, we think that ongoing operating income before gains and losses could very slightly fail to cover the dividend. Under these circumstances, we think the shares will not find price support at a premium to NAV. NAV at March 31, 2014 was $14.32 and we estimate NAV at 6/30/14 at $14.52. We are lowering our target to $14.50, and downgrading the shares a notch to Hold from Buy. We believe the BOD will maintain the dividend.”

Horizon Technology Finance closed on Friday at $14.44.

View more ratings on HRZN

See more from Benzinga

© 2014 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.