UPDATE: Gilford Securities Upgrades Medley Capital to Neutral on BDC Group Price Decline

In a report published Thursday, Gilford Securities analyst Casey Alexander upgraded the rating on Medley Capital Corp.

from Sell to Neutral, and reiterated the $14.35 price target. In the report, Alexander noted, “We have consistently viewed the BDC Group through the lens of valuation, especially when we judge yields versus the premium and/or discount to NAV. We have consistently seen the BDC group trade in a sine wave fashion, moving from premium to NAV to discount to NAV and back again. Our now well publicized move to a negative bias on the BDC group took place when the BDC group reached an average 9.5% premium to NAV. The group has recently declined to a 1.2% premium (essentially at NAV), a significant decline of more than 8%. The average yield of the BDC's in our peer group when downgrade was 9.5%, and given the decline in the group the average yield has risen to 10.3%. Of the 14 BDC's that we cover, 8 are now trading at a discount to NAV as compared to 12 when we went to a negative bias on the group.” Medley Capital Corp. closed on Wednesday at $14.21.