Oppenheimer Releases a Buy Rating on Eagle Point Credit Company Inc

By Jason Carr

In a report released yesterday, Chris Kotowski from Oppenheimer assigned a Buy rating to Eagle Point Credit Company Inc (NYSE: ECC), with a price target of $21. The company’s shares closed yesterday at $18.03.

Kotowski wrote:

“We like ECC’s business model because it lets investors take a focused bet on credit, but in an equity vehicle, with equity risk and equity-like returns that come in the form of a $2.40/13% annual dividend/yield. We still like the business model, but we’d note that even we didn’t quite expect the long, slow spread compression of the leveraged loan market to make quite the dent it did on the portfolio yield. The result is that the company has been under-earning the dividend out of net investment income. We have confidence that management is pulling every lever it can to mitigate this, and that over time, yields and thus income will improve, but investors should be patient.”

According to TipRanks.com, Kotowski is a 5-star analyst with an average return of 10.0% and a 65.7% success rate. Kotowski covers the Financial sector, focusing on stocks such as Great Elm Capital Corporation, Apollo Global Management LLC, and Fidus Investment Corporation.

Eagle Point Credit Company Inc has an analyst consensus of Moderate Buy, with a price target consensus of $21.

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The company has a one-year high of $21.60 and a one-year low of $17.28. Currently, Eagle Point Credit Company Inc has an average volume of 91.06K.

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