UPDATE: Gilford Securities Downgrades Medley Capital Corp. to Hold, Reiterates $14.30 PT

In a report published Monday, Gilford Securities downgraded its rating on Medley Capital Corp.

from Buy to Hold, and reiterated its $14.30 price target. Gilford Securities noted, “We have often discussed the valuation gap between Medley and the associated peer group. A strong part of the basis for our recommendation has been that Medley would narrow or eliminate that valuation gap. This is indeed what has occurred. Now Medley is trading at a clear premium valuation to the rest of the group. Certainly we believe this premium is warranted, but with MCC trading at a 14% premium to NAV versus a group average of 7%, we now see upside share potential as limited near-term and therefore are using this valuation disparity as the basis for downgrading MCC from Buy to Hold.” Medley Capital Corp. closed on Friday at $14.45.