Compass Point ups Horizon Technology to Neutral on positive 12-month return

As previously reported, Compass Point analyst Casey Alexander upgraded Horizon Technology Finance (HRZN) to Neutral from Sell with a price target of $10.50, down from $11. Horizon Technology has “experienced a long-term drain on NAV,” or net asset value, with NAV declining for the last four quarters in a row, says the firm, which has adjusted its NAV estimate to account for the unrealized mark-to-market of Horizon’s publicly traded equity portfolio, which includes the restructured equity from Evelo Biosciences (EVLO). However, when taking into account the firm’s new NAV estimate and the $1.32 annual dividend, the firm’s new price target results in about 4% return, “so we are compelled to raise our rating to Neutral,” the analyst explains.