Sterne Agee CRT raised its 2016 and 2017 EPS estimates for American Capital to $1.75 and $2, from $1.45 and $1.55, respectively. As reasons for the increase, the firm cited the company's decision to raise its share buyback expenditures, as well as the firm's belief that the company will improve its operating efficiency. After the company announced that it would evaluate strategic alternatives, Sterne Agee CRT thinks the company can increase shareholder value by proceeding with its planned spin or by instituting a dividend. The firm keeps an $18 price target and Buy rating on the shares.