Oppenheimer Keeps Their Buy Rating on TCP Capital

Oppenheimer analyst Chris Kotowski maintained a Buy rating on TCP Capital (NASDAQ: TCPC) today and set a price target of $17. The company’s shares opened today at $14.60.

Kotowski wrote:

“TCPC reported its 24th consecutive quarter in which the $0.36 dividend was cleanly covered by net investment income (NII). Moreover, its NAV stands at $14.90 versus $14.76 at the IPO more than six years ago. Despite this stellar track record, the shares trade at just 97% of NAV when they have historically generally traded at a well- deserved premium. Further, the base dividend equates to a 10.2% yield. There have also been $0.25 per share of special dividends since the IPO and $0.44 per share of spillover income. We see the potential for more special distributions in the future.”

According to TipRanks.com, Kotowski is a 5-star analyst with an average return of 10.0% and a 65.6% success rate. Kotowski covers the Financial sector, focusing on stocks such as Eagle Point Credit Company Inc, Great Elm Capital Corporation, and Apollo Global Management LLC.

TCP Capital has an analyst consensus of Strong Buy, with a price target consensus of $17.67.

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Based on TCP Capital’s latest earnings release for the quarter ending December 31, the company reported a quarterly net profit of $13.65 million. In comparison, last year the company had a net profit of $19.44 million.

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TCP Capital Corp. is an externally managed, closed-end and non-diversified management investment company. The company invests primarily in the debt of middle market companies as well as small businesses, including senior secured loans, junior loans, mezzanine debt and bonds.