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Compass Point sees ‘advantageous’ entry point, upgrades MidCap Financial to Buy

As previously reported last night, Compass Point analyst Casey Alexander upgraded MidCap Financial (MFIC) to Buy from Neutral with an unchanged price target of $16. MidCap has closed a three-way merger with Apollo Senior Floating Rate Fund (AFT) and Apollo Tactical Income Fund (AIF) which should eventually result in an improved cushion between NII and the current dividend, and the technical selling from closed-end fund shareholders has negatively impacted the price and consequently improved the risk-reward, creating an “advantageous” entry point, the analyst tells investors.

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