UPDATE: Oppenheimer Initiates OFS Capital to Outperform on Income Streams, Dividend Outlook
Oppenheimer initiated coverage on OFS Capital (NASDAQ: OFS) with an Outperform rating and a $16 price target.
Oppenheimer said, "We think OFS not only benefits from the industry tailwinds 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 closed at $14.11 on Friday.
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