UPDATE: Oppenheimer Initiates Stellus Capital at Outperform on Fundamental and Sector Strength

Oppenheimer initiated coverage on Stellus Capital

with an Outperform rating and a $16 price target. Oppenheimer commented, "We are initiating coverage of Stellus Capital Investment Corp. (SCM) with an Outperform rating and a $16 price target, which in combination with its 9% initial dividend yield, presents the potential for a solid 14% total return. Our rating is based on our favorable view of the industry as well as the fundamentals unique to Stellus. In our accompanying piece, The Case for BDCs, we lay out our views on the industry's favorable secular trends." Stellus Capital closed at $15.32 on Friday.