MCG (MCGC) (MNRK) (ORCL) (FCCO) (FNB) (FSC) Downgraded

MCG Capital Co. (NASDAQ: MCGC), Monarch Financial (NASDAQ: MNRK), Oracle (NASDAQ: ORCL), First Community Co. (NASDAQ: FCCO), F.N.B. Corp (NYSE: FNB) and Fifth Street Finance (NYSE: FSC) were downgraded by analysts.

MCG Capital Co. (MCGC) was downgraded by FBR Capital from an "Outperform” rating to a “Market Perform” rating.

Monarch Financial (MNRK) was downgraded by Zacks Investment Research from an “Outperform” rating to a “Neutral” rating.

Oracle (ORCL) was downgraded by Societe Generale from a “Buy” rating to a “Hold” rating.

First Community Co. (FCCO) was downgraded by Zacks Investment Research from an “Outperform” rating to a “Neutral” rating.

F.N.B. Corp. (FNB) was downgraded by FBR Capital from an “Outperform” rating to a “Market Perform” rating. They have a price target of $11.00 on the company.

Fifth Street Finance (FSC) was downgraded by FBR Capital from an "Outperform” rating to a “Market Perform” rating.

Apollo (AINV) (CREE) (FSC) (MCGC) (PNNT) Price Targets Changed

Apollo Investment Corp. (NASDAQ: AINV), Cree, Inc. (NASDAQ: CREE), Fifth Street Finance (NYSE: FSC), MCG Capital Co. (NASDAQ: MCGC) and PennantPark Investment Corp. (NASDAQ: PNNT) had their price targets changed by analysts.

Apollo Investment Corp. (AINV) had its price target raised by FBR Capital from $8.50 to $12.00. They have a “Market Perform” rating on the company.

Cree, Inc. (CREE) had its price target lowered by Kaufman Brothers from $29.00 to $24.00. They have a “Sell” rating on the company.

Fifth Street Finance (FSC) had its price target raised by FBR Capital from $10.50 to $14.50. They have an “Outperform” rating on the company.

MCG Capital Co. (MCGC) had its price target raised by FBR Capital from $5.00 to $7.00. They have an “Outperform” rating on the company.

PennantPark Investment Corp. (NNT) had its price target raised by FBR Capital from $11.50 to $14.00. They have an “Outperform” rating on the company.

Coverage on (MCGC) (ATVI) (MYRG) (PACB) (SREV) Reiterated

Coverage on MCG Capital Corporation (NASDAQ:MCGC), Activision Blizzard (NASDAQ:ATVI), MYR Group (NASDAQ:MYRG), Pacific Biosciences of California, Inc. (NASDAQ:PACB) and ServiceSource International (NASDAQ:SREV) reiterated by analysts.

FBR Capital Markets analysts reiterated an "Outperform" rating on MCG Capital Corporation (MCGC). They have a price target of $7 on the company.

Deutsche Bank (NYSE:DB) analysts reiterated a "Buy" rating on Activision Blizzard (ATVI). They have a price target of $15 on the company.

FBR Capital Markets analysts reiterated an "Outperform" rating on MYR Group (MYRG).

Deutsche Bank analysts reiterated a "Buy" rating on Pacific Biosciences of California, Inc. (PACB). They have a price target of $16.50 on the company.

Deutsche Bank analysts reiterated a "Buy" rating on ServiceSource International (SREV). They have a price target of $22 on the company, up from $20.

Dividends on (MCGC) (DFZ) (TYY) (TSX:CJT) (TSX:GS) Declared

MCG Capital Corporation (MCGC), R.G. Barry Corporation (DFZ), Tortoise Energy Capital Corp. (TYY), Cargojet Income Fund (TSX:CJT) and Gluskin Sheff + Associates Inc. (TSE:GS) declare dividends.

The Board of Directors of MCG Capital Corporation (MCGC) declared a quarterly common stock dividend of $0.17 per share payable 7/15/11 to shareholders of record at the close of business on 6/15/11.

The Board of Directors of R.G. Barry Corporation (DFZ) declared a quarterly common stock dividend of $0.07 per share payable 6/13/11 to shareholders of record at the close of business on 5/23/11.

The Board of Directors of Tortoise Energy Capital Corp. (TYY) declared a quarterly common stock dividend of $0.4025 per share payable 6/1/11 to shareholders of record at the close of business on 5/24/11.

The Board of Directors of Cargojet Income Fund (TSX:CJT) declared a quarterly common stock dividend of C$0.135 per share payable 7/5/11 to shareholders of record at the close of business on 6/20/11.

The Board of Directors of Gluskin Sheff + Associates Inc. (TSX:GS) declared a quarterly common stock dividend of C$0.1375 per share payable 6/13/11 to shareholders of record at the close of business on 5/20/11.

PennantPark Investment (Nasdaq:PNNT), MCG Capital (Nasdaq:MCGC)

FBR Capital considers PennantPark Investment (Nasdaq:PNNT) and MCG Capital (Nasdaq:MCGC) as the top BDC picks for 2011, with PennantPark their top pick and MCG picked on valuation.

FBR said, "We expect that the positive momentum we witnessed in 2010 in the business development company (BDC) space will continue into 2011 against a backdrop of improving credit quality and business fundamentals and a strong pipeline of originations. Relative to historical levels, BDCs as a group are under-levered at 0.53x debt to equity, versus 0.7x historically, which allows them to take advantage of the market opportunity ahead of them. Investment spreads remain attractive relative to pre-crisis levels, which, coupled with portfolio churn into interest-earning investments (from non-earning equity investments), will drive NOI and dividend visibility.

"Given the low interest rate environment, we also expect that investors will gravitate toward these attractive yields that average 9% today. We believe that these dividend streams are generally sustainable with the potential for growth as our thesis plays out. The funding environment looks favorable, as many BDCs have access to equity and debt capital markets, bank lines, and inexpensive long-term funding from the Small Business Administration (SBA).

"Overall, we expect that these positive attributes will result in multiple expansion for the group. Specific to our coverage, we prefer companies that are best positioned to exploit the market opportunity ahead. PennantPark Investment Corporation (Outperform) is our top idea headed into 2011 within our coverage universe. On valuation, we like MCG Capital Corporation (Outperform)."

PennantPark Investment closed Friday at $12.70, up $0.26, or 2.09 percent. MCG Capital closed Friday at $7.23, up $0.09, or 1.26 percent.