MidCap Financial price target lowered to $13 from $13.25 at BofA

BofA analyst Derek Hewett lowered the firm’s price target on MidCap Financial (MFIC) to $13 from $13.25 and keeps an Underperform rating on the shares. The Q1 results for the business development companies were “somewhat disappointing,” with profitability weaker than expected as lower rates and spreads, tariff-related macro uncertainty, and normalizing credit weighted on reports, the analyst tells investors in a research note. However, there was only as small uptick in non-accruals to 2.9%, which remain well below the industry longer-term average, adds BofA. It remains positive on the sector.