For a business development company such as Prospect Capital (PSEC), the total number of originations plays a vital role in determining its investment objectives.
Prospect Capital (PSEC) has made first lien, senior, and secured debt a priority in terms of originations because this will help it to hedge downside risk.
Prospect Capital has a PE (price-to-earnings ratio) of 8.61x on a next-12-month basis compared to its peer average of 8.41x, implying Prospect’s higher valuation.
As of October 2017, five analysts are covering Prospect Capital (PSEC). One analyst has given it a “sell” rating, one analyst has rated it a “strong sell,” and three have given it “hold” ratings.
Analysts have given a one-year price target of $6.88 per share on Prospect Capital stock, which reflects a marginal rise of 0.29% from its current price.
