ARCC - JPMorgan downgrades Ares Capital to Neutral on valuation

Ares Capital (ARCC) shares slip 1.3% in premarket trading after JPMorgan analyst Melissa Wedel downgrades the stock to Neutral from Overweight, citing valuation.See ARCC's total return over the past month vs. S&P 500 and peers TSLX, SLRC and OCSL:Portfolios with "out-sized non-accruals, non-income producing equity allocations, and cyclical industry exposure will face headwinds to multiple expansion, while others without these specific headwinds are positioned to benefit from multiple expansion," Wedel wrote in a note to clients.Her top picks are Sixth Street Specialty Lending (TSLX), Solar Capital (SLRC), Oaktree Specialty Lending (OCSL), and TCG BDC (CGBD).See another view on ARCC, banking on its high-quality management and resources.

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JPMorgan downgrades Ares Capital to Neutral on valuation