Ladenburg Thalmann analyst Mickey Schleien upgraded OFS Capital Corp.'s stock rating to "buy" from "neutral" with a price target of $12.
Schleien noted that the company reported net investment income of 36 cents per share for the second quarter due to better-than-forecast portfolio growth, beating the consensus estimate of 35 cents per share and his estimate of 34 cents per share.
The analyst said that dividend coverage from NII and good NII yield are among the company's investment merits. Some investment concerns are deterioration of net asset value and portfolio concentration, he said.
Schleien's EPS estimates for the company are $1.24 for 2019 and $1.44 for 2020.