Ares Capital downgraded to Market Perform from Outperform at Raymond James

Raymond James downgraded Ares Capital (ARCC) to Market Perform from Outperform without a price target The downgrade is more valuation-driven rather than a credit or portfolio issue, the analyst tells investors in a research note. The firm continues to see an attractive risk/reward with Ares Capital’s “high quality and highly diversified portfolio, very robust” credit quality, and a dividend that can be covered even if base rates decline materially, but believes this is reflected in the stock’s current premium valuation.