WhiteHorse Finance: Making Solid Progress on Non-Accruals with Payoff Potentially Occurring as Early as 2H26

Research evidence excerpt

J P M O R G A N

North America Equity Research

19 August 2026

WhiteHorse Finance

Making Solid Progress on Non-Accruals with Payoff

Potentially Occurring as Early as 2H26

Underweight

WHF, WHF US

Price (17 Aug 26):$7.08

▲Price Target (Dec-27):$6.50

Prior (Dec-27):$6.00

WHF reported 2Q26 NII of $0.217 per share, below JPM and consensus estimates

of $0.23/$0.25, respectively. NAV per share increased 2.6% sequentially to $11.77,

above our forecast of $11.71 (we note WHF was one of the few BDCs whose

reported NAV exceeded our 2Q26 estimates). WHF maintained its regular

quarterly distribution of $0.25/sh (stable Q/Q).

Consumer Finance

Richard Shane AC

(1-415) 315-6701

Hong Zhang

We are revising our Dec 2027 price target from $6.00 to $6.50. This is based on

a 0.55x (formerly 0.52x) target multiple, which is below the long-term peer average

trading multiple and reflects credit challenges in the portfolio, the reduced

dividend, and NAV pressure from credit and fair value marks. We apply a target

multiple to our estimated YE2027 NAV of $11.88 (formerly $11.99), which

implies an annualized total return of 7% through YE2027.

(1-212) 622-6416

J.P. Morgan Securities LLC

Model impact:

Q1

Q2

Q3

Q4

FY

We reduce our NII/sh estimates to $0.93 for 2026 (from $0.94 previously), and

leave them unchanged at $0.92 for 2027.

We increase our dividend estimates to $1.01 (from $0.95 previously) for 2026,

and to $0.90 for 2027 (from $0.80 previously).

Our NAV estimates modestly decrease. We slightly decrease our NAV/sh

estimates to $11.80 at YE2026 (from $11.81 previously), and decrease to

$11.88 at YE2027 (from $11.99 previously).

Key Takeaways:

Market conditions were described as more conservative, with lower

leverage, higher pricing, and improved documentation (including LME

protections). Management said M&A volumes remain only moderate, but it

sees market conditions as improved versus last year due to reduced capital

formation and shifting investor sentiment. It said leverage is generally 0.5x to

1.0x lower than a year to 1.5 years ago, with pricing 25–50 bps higher,

particularly in sponsor deals. It also said it is seeing better documentation,

…