Market Overview

Monroe Capital Downgraded To Neutral At Ladenburg Thalmann, Says Stock Appears Fully Valued


Ladenburg Thalmann downgraded Monroe Capital Corp (NASDAQ: MRCC) to Neutral from Buy and removed the prior $15 price target on shares, awaiting more attractive entry point.

According to the analysts, despite the company having another strong quarter, reporting 2Q16 NII/share of $0.44 compared to their $0.41 forecast on higher-than-forecast fee income and lower G&A, they believe shares are fairly priced.

The analysts reduced their adjusted 2016 NII/share forecast from $1.75 to $1.73 due to earnings drag.

"As dividend income is currently generating ~8¢/sh of gross income and taking into account the interest rate uncertainty, we expect MRCC to maintain its regular dividend but believe there may be scope for special dividends," the analysts wrote.

Despite maintaining their view that Monroe is an exceedingly well-managed BDC, the analysts believe shares are fairly valued having reached a P/NAV multiple of around 1.1x, their historical high ratio.


Related Articles (MRCC)

View Comments and Join the Discussion!

Posted-In: Analyst Color Downgrades Analyst Ratings

Latest Ratings

CTASRBC CapitalMaintains360.0
MDTTruist SecuritiesMaintains120.0
ATEMaxim GroupInitiates Coverage On1.0
MNPRMaxim GroupInitiates Coverage On11.0
RDS/BScotiaBankInitiates Coverage On34.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at