Oppenheimer Sees Fair Value near Book Value for Golub Capital (GBDC)

Golub Capital BDC, Inc. (NASDAQ:GBDC) is included among the 10 Best Stocks Under $15 to Buy Right Now.Oppenheimer Sees Fair Value near Book Value for Golub Capital (GBDC)

On May 7, Oppenheimer analyst Mitchel Penn lowered the firm’s price recommendation on Golub Capital BDC, Inc. (NASDAQ:GBDC) to $14 from $16. The analyst reiterated an Outperform rating on the shares. The firm noted that, as expected, ROE declined and NAV fell by $0.69 per share since Q2 2025. Oppenheimer estimates that Golub earns a 9% ROE and, based on an estimated cost of equity capital of 9%, calculates a fair value of $14.35 per share, or 1.0x book value.

During the earnings call for fiscal Q2 2026, COO Timothy Topicz said that roughly 89% of GBDC’s investment portfolio, measured at fair value, remained within the company’s highest internal rating categories. He also noted that nonaccrual investments stayed low at 1.4% of the total portfolio at fair value. Topicz added that widening credit spreads accounted for most of the company’s $0.52 per share in net realized and unrealized losses, which resulted in a quarterly loss of $0.18 per share.

CFO Christopher Ericson said GBDC’s investment income yield declined by around 30 basis points sequentially to an annualized 9.7%. At the same time, he noted that the company’s cost of debt fell about 20 basis points to 5.2%, reflecting its debt structure, which is roughly 80% floating-rate funded. He added that GBDC’s weighted average net investment spread narrowed slightly during the quarter.

Golub Capital BDC, Inc. (NASDAQ:GBDC) is an externally managed, non-diversified closed-end management investment company. The company aims to generate current income and capital appreciation by investing primarily in one-stop and other senior secured loans to U.S. middle-market companies.

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