UPDATE: Stifel Nicolaus Downgrades Golub Capital BDC to Hold on Valuation

Stifel Nicolaus reduced its rating on Golub Capital BDC

from Buy to Hold and removed its previous $16 price target. Stifel Nicolaus commented, "We are downgrading GBDC to Hold from Buy as the stock is nearing our $16.00 target price. We upgraded GBDC to Buy late April 2012, as we believed there was limited downside potential in the shares based on the stock price and the defensive nature of GBDC's assets and liabilities. We still believe GBDC represents one of the lowest risk BDCs based on its lower risk assets (senior focused, lower yielding investments) as well as a balance sheet financed largely by equity and securitization debt. In our opinion, the current valuation of 1.08x book value and an 8.1% dividend yield accurately reflects the risk profile of GBDC's balance sheet and thus lowering our rating to Hold." Golub Capital BDC closed at $15.75 on Monday.