UPDATE: Citi Color on Solar Capital Downgrade, PT Decrease

Citi, which lowered its PT while downgrading shares of Solar Capital (NASDAQ: SLRC), is providing some color on the stock.

“We are downgrading the shares of SLRC to a Hold (2H) from a Buy (1H) due to 1) less attractive risk/reward given the strong stock outperformance over the past 15 months (SLRC total return +47% vs S&P 500 +14%), 2) the end of QE2 leaves credit markets & risk assets vulnerable to a pull back, in our view and 3) we see signs of increased competition in middle market lending. SLRC is a BDC/RIC that targets middle market corporate loans,” Citi writes.

Solar Capital closed Wednesday at $24.85.