PNNT Should I Buy

Truist analyst Arren Cyganovich lowered the firm's price target on PennantPark to $5 from $6 and keeps a Buy rating on the shares as part of a broader research note updating the firm's models on Business Development Companies that have recently reported results. The firm notes that its reduced price targets reflect lower interest yields and slowing investment activity, further stating that credit quality worsened again in Q1 for the group, though for the most part, credit remains in check, the analyst tells investors in a research note. Truist adds that it maintains a bullish stance on the group primarily due to valuations, though with continued expected direct lending retail evergreen fund redemptions, Truist sees the group likely treading water in the near-term.