OFS - Oppenheimer initiates OFS Capital at Perform as stock nears fair value

Ivan Bajic/E+ via Getty Images Oppenheimer analyst Mitchel Penn starts covering OFS Capital (OFS) with a Perform rating as he considers the stock is currently trading close to fair value. He projects that the BDC can earn an 8.4% ROE; given its estimated cost of equity capital of 10%, Penn calculates a fair value of $10/share or 84% of book value. OFS Capital shares closed at $9.96, up 1.8%, on Wednesday. Historically, ROE since its IPO in 2021 has averaged 6.9%, the analyst points out. Penn's Perform rating contrasts with the Quant rating of Very Bullish. SA contributor Darren McCammon sees OFS Capital benefiting from an inflationary, rising interest rate environment

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Oppenheimer initiates OFS Capital at Perform as stock nears fair value