Great Elm Capital Corporation (GECC) Gets a Buy Rating from Oppenheimer

By Austin Angelo

Oppenheimer analyst Chris Kotowski maintained a Buy rating on Great Elm Capital Corporation (NASDAQ: GECC) yesterday and set a price target of $12. The company’s shares closed on Friday at $9.57.

Kotowski wrote:

“GECC reported net investment income of $0.57 per share, but this included a reversal of a previously accrued incentive fee related to PIK income from its position in Avanti Communications. Excluding this, we estimate core NII was ~$0.30, essentially in line with our $0.29 estimate and comfortably above the $0.25 quarterly dividend. NAV was also stable at $11.79, and that was also a positive. The biggest outstanding issue, however, the company’s $42M (21% of investments/33% of NAV) exposure to Avanti remains unresolved, although there were some positive developments on that front. On balance, we still think the shares are attractive for risk-tolerant investors.”

According to TipRanks.com, Kotowski is a 5-star analyst with an average return of 11.3% and a 67.6% success rate. Kotowski covers the Financial sector, focusing on stocks such as Eagle Point Credit Company Inc, Fidus Investment Corporation, and Solar Senior Capital Ltd.

Great Elm Capital Corporation has an analyst consensus of Hold.

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Based on Great Elm Capital Corporation’s latest earnings release for the quarter ending June 30, the company reported a quarterly net profit of $2.65 million. In comparison, last year the company had a GAAP net loss of $2.47 million.

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Great Elm Capital Corp. a business development company that invests in smaller and lower middle-market companies located in the US. The fund targets companies operating in the fields of telecommunications, food and food distribution, business services, healthcare, marketing & data services, energy services, industrial, consumer products, media, alternative en