Clear Street upgrades Gladstone Capital on valuation, ‘steady’ performance

Clear Street upgraded Gladstone Capital (GLAD) to Buy from Hold with a price target of $23, down from $25.50. Q4 results reflected “solid” portfolio growth but modest pressure on earnings as higher interest expense offset increased investment income, notes the analyst, who anticipates net interest income remaining above the new dividend. In addition to valuation, the firm cites stable credit and modest leverage expansion among the conditions that support a Buy rating.