UPDATE: Oppenheimer Holdings Initiates Coverage on OFS Capital Corp. with Outperform Rating, $16 PT

In a report published Monday, Oppenheimer Holdings initiated coverage on OFS Capital Corp.

with an Outperform rating and $16.00 price target. Oppenheimer Holdings noted, “We are initiating coverage of OFS with an Outperform rating and a $16 price target. We think OFS not only benefits from the industry tailwinds (which we talk about in the accompanying report titled The Case for BDCs) but that it also benefits from its diverse portfolio, its SBA license as well as its smaller loan size and management's 30% ownership. With OFS, investors are getting two different income streams: A stable senior secured loan portfolio augmented by growth through an SBIC entity. We think this will generate an initial dividend yield of 9.6% rising to 10.6%.” OFS Capital Corp. closed on Friday at $14.11.