UPDATE: Citigroup Reiterates Neutral Rating, Raises PT on Solar Capital Ltd.

In a report published Friday, Citigroup reiterated its Neutral rating on Solar Capital Ltd. SLRC, and raised its price target from $20.00 to $23.00. Citigroup noted, “SLRC cited strong technicals in the corporate middle market as investors chased higher yielding assets. Refinancing activity continues to dominate loan demand, as the liquid loan market and high yield market set off a refi wave. The net effect has been tighter spreads in the corporate middle market, and while SLRC should be able to dodge some of the spread tightening as their loans are less liquid, mgt also noted their disciplined approach to capital deployment. We continue to like SLRC and view management team as strong, though believe the shares are appropriately valued at current levels. Target up to $23 on 1x stated book value.” Solar Capital Ltd. closed on Wednesday at $22.58.