UPDATE: Stifel Nicolaus Downgrades MCG Capital to Hold
Stifel Nicolaus lowers its rating on MCG Capital (NASDAQ: MCGC) to Hold from Buy as current valuation allows for limited upside.
Stifel Nicolaus notes, "Given the recent strength in valuation we don't believe the expected upside potential from current levels warrants a Buy rating give the higher risk profile of MGCG. Our previous target price of $5.50 represents about 10% upside from current levels which combined with the expected 2012 dividend of $0.56-$0.60 per share would imply an expected total return of 20+%. This is good, but not quite good enough to warrant a Buy rating given the risks and volatility we expect in MCGC."
MCGC closed at $5.01 a share on Friday.
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