UPDATE: Oppenheimer Initiates Garrison Capital with Outperform on Favorable Industry View, Unique Fundamentals

In a report published Tuesday, Oppenheimer analyst Chris Kotowski initiated coverage on Garrison Capital

with an Outperform rating and $16.00 price target. In the report, Kotowski noted, “We are initiating coverage of Garrison Capital Inc. (GARS) with an Outperform rating and a $16 price target, which in combination with the initial 9% dividend yield, presents the potential for a solid 12% total return. Our rating is based on our favorable view of the industry as well as the fundamentals unique to the firm. Given the secular pullback by banks out of middle market lending, we think BDC's are well positioned due to strong commercial loan demand. GARS has a high-quality portfolio and the ability to grow the dividend by the end of 2014 with its origination strategy.” Garrison Capital closed on Monday at $15.15.