Analyst at Oppenheimer initiated coverage on Main Street Capital Corporation (NYSE:MAIN) with perform rating and a $39 price target.

The company is an internally managed BDC primarily focused on providing customized debt and equity financing to lower middle-market companies and debt capital to middle-market companies.

The analysts are forecasting EPS of $3.49 and $2.58 for 2021 and 2022, respectively, implying an ROE of 15.6% and 10.8%. Their 2021 estimate includes actual net realized/unrealized gains and losses while their 2022 estimate does not. The brokerage projects that the company can earn a 14% ROE, and given an estimated cost of equity capital of 8.5%, they calculate a fair value of $39/share.