UPDATE: Credit Suisse Starts Medley Management (MDLY) at Outperform

(Updated at - October 20, 2014 11 AM EDT)

Credit Suisse initiated coverage on Medley Management (NYSE: MDLY) with an Outperform rating and a price target of $23.00.

Analyst Craig Siegenthaler said, "Our initial 2015-16 EPS (after tax core net income – "ATCNI") estimates of $1.60 and $2.30 imply 57% and 44% y/y growth, and our 2015 dividend per share estimate of $0.88 implies a 5-6% yield (versus ~2.5% for traditional/C-Corp peers)."

"MDLY is 100% focused on the high-growth alternative credit asset class and lacks the negative growth "baggage" of traditional active fund classes. Additionally, 55% of MDLY's AuM base is in permanent capital structures, which cannot be redeemed like traditional asset management products. While MDLY is currently focused on growing (1) its retail platform through its public (Medley Capital Corporation [MCC]) and private (Sierra Income Corporation) Business Development Corporations [BDCs] and (2) its institutional/separately managed accounts [SMA] business, we also believe that MDLY may launch additional investment products by 2016 (industry-specific products, CLO, and Commercial Real Estate [CRE]). Additionally, with its 5-6% dividend yield (and growing), MDLY is the highest yielding C-Corp asset management stock in the United States," he added.

For an analyst ratings summary and ratings history on Medley Management click here. For more ratings news on Medley Management click here.

Shares of Medley Management closed at $15.50 yesterday.

You May Also Be Interested In

• Amazon.com (AMZN) PT Raised to $215 at UBS
• Persistent Systems Ltd. (PSYS:IN) PT Lowered to INR4,560 at Macquarie
• Keefe, Bruyette & Woods Upgrades Trustmark (TRMK) to Outperform