Ares Capital downgraded to Equal Weight from Overweight at Wells Fargo

Wells Fargo analyst Finian O’Shea downgraded Ares Capital to Equal Weight from Overweight with a price target of $18, down from $20. Having benefited from interest rates and stable credit, the outperformance of business development company shares "appears out of legs," the analyst tells investors in a research note. The firm says emerging credit risk is "likely to take center stage" at a point where net interest margin expansion "has run its course."