Deutsche Bank Initiates Coverage On Eagle Point

On Tuesday, analysts at Deutsche Bank initiated coverage on shares of Eagle Point ECC with a Buy rating and $22 price target.

Stephen Laws expects Eagle Point to benefit from:

1) Investment opportunities in CLO equity and debt tranches, as issuance has increased in ‘12 and ‘13 with record level volumes in ’14.

2) Low default rates and increased volumes and liquidity in the broadly syndicated leveraged loan market, which comprise the vast majority of CLO portfolio collateral.

The $22 price target is based on applying a 10 percent premium to the firm’s post-IPO NAV estimate of $19.96 per share.

Shares of Eagle Point recently traded at $20.20 down 1.22 percent.