Palmer Square initiated with an Outperform at Oppenheimer

Oppenheimer analyst Mitchel Penn initiated coverage of Palmer Square with an Outperform rating and $17 price target. While most BDCs typically invest in private middle market loans, Palmer Square invests in liquid bank loans which feature larger borrowers with higher EBITDA and revenue, few covenants, and lower yields, the firm notes. Oppenheimer estimates the company will earn $3.91, $1.71, and $1.58 for 2023, 2024, and 2025, respectively, which equates to an ROE of 26.1%, 12.1% and 11.7%.