Lucid downgrades Great Elm Capital on valuation, credit concerns

Lucid Capital downgraded Great Elm Capital (GECC) to Neutral from Buy with a price target of $11, down from $12. Great Elm’s “premium” valuation and new concerns over its credit quality could limit the stock’s near-term upside potential, the analyst tells investors in a research note. The firm points out that auto parts manufacturer First Brands filed for Chapter 11 bankruptcy protection yesterday. Great Elm has been a lender to First Brands since 2020, it added. Lucid views the stock as fairly valued at current levels.