National Securities analyst Christopher Testa upgraded TCP Capital Corp. to "buy" from "neutral," citing what he described as the company's promising fee structure, robust economic returns, nominal credit issues and stable portfolio growth.

Highlighting the company's operational performance, the analyst said that with second-quarter volume at $263.4 million and repayments at $159.0 million, TCP Capital registered a "very strong" period of originations.

"While spreads have compressed materially the past year and a half or so, we regard TCP as one of the most disciplined credit investors in the sector," the analyst wrote.

Testa raised his price target to $19 from $17. His net investment income per-share estimates are $1.57 for 2017 and $1.60 for 2018.