UPDATE: Wunderlich Securities Initiates Coverage on Eagle Point Credit Company with Buy Rating, $23 PT on Structured Investments in Leveraged Loans

In a report published Wednesday, Wunderlich Securities analyst Merrill Ross initiated coverage on

with a Buy rating and $23.00 price target. In the report, Wunderlich Securities noted, “We are initiating coverage of Eagle Point Credit Company Inc. (ECC) with a Buy rating and a $23 target price. We believe that investors could realize total returns in excess of 24%, divided between a cash yield of 11% and price appreciation of 13% to our target. We believe that an investment in ECC's stock represents a unique opportunity to benefit from the investment acumen of the sponsor, and to achieve value creation that is not correlated to the equity markets in general and generate a return that is in excess of returns available from investing in other RICs that invest in middle-market senior secured loans. Our 12-month price target of $23/share represents a 10% premium to our forecast of forward NAV of $20.72 per share.” Eagle Point Credit Company closed on Tuesday at $20.35.