SAR - Raymond James downgrades Saratoga Investment as risk/reward not attractive

2023-07-12 10:31:28 ET

• Raymond James on Wednesday downgraded Saratoga Investment ( NYSE: SAR ) to Market Perform from Outperform it believes risk/reward is not attractive at current levels.
• "We expect earnings power to remain robust, as SAR remains one of the BDCs with the most positive exposure to higher base rates," said analyst Robert Dodd.
• "However, we do not believe the current risk/reward is attractive at current levels – leverage is too high, and SAR fails our leverage stress tests implying elevated risk in a volatile market environment," he added.
• Raymond James' views contrast with bullish SA Quant and sell-side ratings .
• Now read - Saratoga Investment: An Under-The-Radar 10.4% Dividend Yield

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