Ares Capital downgraded to Neutral from Buy at B. Riley

B. Riley downgraded Ares Capital to Neutral from Buy with a $21 price target. With the Federal Reserve’s “abrupt” mid-December pivot and the resulting increase in rate cut expectations for 2024, portfolio and balance sheet positioning has become that much more important, the analyst tells investors in a research note. In addition, business development valuations charged higher since late November, pushing several names into less favorable risk/reward positions. Against that fundamental and valuation backdrop, the firm is approaching recommendations more selectively.