UPDATE: Keefe, Bruyette & Woods Upgrades Blackrock Kelso Capital On Valuation

In a report published Tuesday, Keefe, Bruyette & Woods analyst Greg Mason upgraded the rating on

from Market Perform to Outperform, and reiterated the $9.75 price target. In the report, Keefe, Bruyette & Woods noted, “We are upgrading the shares of BKCC to Outperform. BKCC recently reduced its dividend to a level that we believe is very sustainable and the subsequent decline in the stock price combined with the Russell reconstitution provides for an attractive entry point. In addition, despite the dividend cut, fundamentals of BKCC are improving with several significant equity investments recently monetized which could lead to earnings growth in the future. Using our $9.75 target price (unchanged) the shares offer a 23% total return.” Blackrock Kelso Capital closed on Monday at $8.63.