UPDATE: Oppenheimer Initiates Coverage on New Mountain Finance with Outperform on Attractive Dividend Yield

In a report published Monday, Oppenheimer analyst Chris Kotowski initiated coverage on New Mountain Finance (NYSE: NMFC) with an Outperform rating and $15.00 price target.

In the report, Oppenheimer noted, “We are initiating coverage of New Mountain Finance Corporation (NMFC) with an Outperform rating because we think its very attractive 9.5% dividend yield is very secure as the portfolio is mostly floating rate and the company has an outstanding track record of excellent underwriting. Our price target is $15, and implies a total return of ~13%. NMFC is managed by New Mountain Capital, a private-equity-based alternative asset manager that specializes in non-cyclical, defensive, quality growth investments largely in the software, healthcare, education, federal and business services sectors. NMFC invests in the same sectors but by policy not in the New Mountain equity transactions.”

New Mountain Finance Corp. closed on Friday at $14.16.