Hilliard Lyons analyst Andrew Stapp has upgraded Triangle Capital Corp. to "long-term buy" from "neutral," saying he believes the recent selloff is overdone given the company's attractive yield and the steps it took to improve credit quality.
Stapp said the company has been rotating more toward senior and unitranche debt, which is improving the company's credit profile but resulting in yield dilution. Also, the losses that the company reported in 13 of the last 15 quarters are mostly on older legacy investments. Stapp said the company has restructured its investment approval and underwriting processes and has made "strong" investments under the new structure.
He lowered the price target for the company to $13.50 from $15.50. He maintained his estimates for net investment income per share at $1.67 for 2017 and $1.66 for 2018.