TCP Capital Corp. Coverage Initiated at Wells Fargo & Co. (TCPC)
Research analysts at Wells Fargo & Co. assumed coverage on shares of TCP Capital Corp. (NASDAQ:TCPC) in a report released on Tuesday, TheFlyOnTheWall.com reports. The firm set an “outperform” rating on the stock.
The analysts wrote, “We are initiating coverage of TCP Capital Corp. (TCPC) with an Outperform rating based on (1) the stock’s attractive valuation at 1.03x NAV, (2) the potential for NOI growth via leverage/portfolio churn, (3) the lower risk nature of the portfolio (i.e. heavily weighted towards senior secured investments), and (4) the company’s alignment with shareholders through a management fee which includes realized and unrealized gains and losses. In addition, we believe allocating to Quartile 1 BDCs like TCPC is sensible based on (1) strong dividend coverage, (2) a strong liquidity position and (3) an attractive cost structure. Our 2013/2014 NOI/share estimates are $1.62 and $1.61, respectively. Our valuation range for TCPC is $18.50-19.50 per share, based on an expected earnings yield of 8.2-8.8% on our 2014 estimate of $1.61. This implies total return potential of 18-26% over the next 12-18 months. We also estimate TCPC will generate 2013/2014 dividends of $1.48 and $1.49, respectively.”
Shares of TCP Capital Corp. (NASDAQ:TCPC) traded up 1.35% on Tuesday, hitting $15.77. The stock had a trading volume of 43,560 shares. TCP Capital Corp. has a 52-week low of $14.39 and a 52-week high of $16.94. The stock has a 50-day moving average of $15.67 and a 200-day moving average of $15.82.
TCP Capital Corp. (NASDAQ:TCPC) last posted its quarterly earnings results on Thursday, August 8th. The company reported $0.38 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.41 by $0.03. On average, analysts predict that TCP Capital Corp. will post $1.63 earnings per share for the current fiscal year.
The company also recently announced a quarterly dividend, which is scheduled for Monday, September 30th. Stockholders of record on Monday, September 9th will be paid a dividend of $0.36 per share. This represents a $1.44 annualized dividend and a dividend yield of 9.25%. The ex-dividend date is Thursday, September 5th.
TCP Capital Corp. is an externally managed, non-diversified closed-end management investment company.
Get Analysts' Upgrades and Downgrades via Email - Stay on top of analysts' coverage with Analyst Ratings Network's FREE daily email newsletter that provides a concise list of analysts' upgrades and downgrades. Click here to register now.