UPDATE: Deutsche Bank Downgrades TCP Capital on Valuation

In a report published Monday, Deutsche Bank analyst Stephen Laws downgraded the rating on

from Buy to Hold, but reiterated the $17.50 price target. In the report, Deutsche Bank noted, “TCPC reported solid 4Q results as NII of 40c beat our estimate on higher prepayment premiums and NAV per share increased by 12c to $15.18. While we are decreasing our 2014 NII estimates to reflect lower yields on new investments, we expect portfolio income to benefit as TCPC increases leverage in 1H14. We are maintaining our target of $17.50 per share, which is based on a 15% premium to NAV. Given the current valuation relative to our target, we are reducing our rating to a Hold.” TCP Capital closed on Friday at $17.22.