Zacks Investment Research downgraded shares of American Capital, Ltd. (ACAS) from OUTPERFORM to NEUTRAL on June 14, 2013, with a target price of $14.00.
We have downgraded our recommendation on American Capital to Neutral based on the company's first-quarter 2013 operating earnings, which lagged the Zacks Consensus Estimate. Moreover, reduced top-line and rise in non-accrual loans acted as headwinds. However, new investments and reduction of debt were the positives. We believe the company's healthy capital deployment activity will enhance investors' confidence in the stock. Though the portfolio performance will expectedly continue to improve with economic recovery, a low interest rate environment and global cues are matters of concern.
Get all Zacks Research Reports and be alerted to fast-breaking buy and sell opportunities every trading day.
To get a free copy of the research report on American Capital, Ltd. (ACAS),
click here.
For more information about research offerings from Zacks Investment Research, visit
Zacks.com .
Be the first to comment