MLV Maintains Buy On TCP Capital Ahead Of Release Of 3Q14 Earnings

In a research report released today, MLV analyst Christopher Nolan maintained a Buy rating on TCP Capital (NASDAQ:TCPC) with a $19 price target ahead of the company’s release of its third-quarter earnings.

Nolan wrote, “When TCPC reports 3Q14 earnings on November 6, we are expecting solid, in-line results driven by incremental investment asset growth and steady investment yields on a linked-quarter basis. Further, an accretive common equity offering in July 2014 is likely to drive incremental NAV/share growth vs. 2Q. If there is a swing factor for 3Q earnings, it is most likely to be rising funding costs.”

The analyst continued, “We expect revenues to be driven by strong incremental earning asset growth and steady investment yields. This follows management comments in the 2Q14 earnings call, but was also supported by a 5.4m common stock offering announced July 28, 2014. As we noted in our report then, TCPC did not necessarily need to raise capital, but the fact they did was indicative of a strong deal pipeline. In the 2Q call management indicated that deal yields remained steady.”

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