UPDATE: Wunderlich Securities Downgrades TCP Capital to Hold On Unlikely Significant Multiple Expansion

In a report published Tuesday, Wunderlich Securities analyst Merrill Ross downgraded TCP Capital Corp

from a Buy rating to a Hold rating but raised the price target from $17.50 to $18.00. In the report, Wunderlich Securities says "TCP Capital (TCPC) reported 3Q13 NII of $0.40 and a $0.12 increase in NAV to $15.06 per share. The NII was below our $0.44 estimate, mostly based on the timing of new investments in the quarter. During the quarter, TCPC funded $184mm in fifteen new and two existing portfolio companies. Of the 15 new loans, TCPC was the sole lender on three transactions, and was one of two or three lenders on six loans, and participated in light syndications on the remaining loans. We are trimming our NII estimates slightly for 2014, and because we believe that significant multiple expansion is unlikely, we are lowering our rating from Buy to Hold despite a modest increase in our target to $18.00/sh." TCP Capital closed on Monday at $17.42.