Wells Fargo Downgrades Solar Capital (SLRC) to Market Perform; Valuation Call

Wells Fargo downgraded Solar Capital (NASDAQ: SLRC) from Outperform to Market Perform with a price target range $22-$23.

Wells analyst says, "The downgrade is based on our belief that the stock price currently reflects fundamentals at this time. At present, SLRC trades at premium valuation (10.3% dividend yield and a 1.1x price to book) relative to the BDC average (11% dividend yield and 0.88x price to book). In addition, SLRC (ranked Quartile 3 by our proprietary BDC scorecard) now trades outside of our $22-23 valuation range. While we believe the company has an attractive portfolio growth profile and a strong management team, investors may find better risk adjusted returns elsewhere in the BDC space (particularly in Quartile 1 rated BDCs)."

For an analyst ratings summary and ratings history on Solar Capital click here. For more ratings news on Solar Capital click here.

Shares of Solar Capital closed at $23.29 yesterday.

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