
FSK Stock Forecast & Price Target
FSK Analyst Ratings
Bulls say
FS KKR Capital Corp demonstrates a strong investment strategy focused on generating current income through its portfolio of senior secured and second lien loans to private middle-market U.S. companies. Despite a recent quarter-over-quarter increase in non-accruals to 5.3%, the company has previously shown an ability to manage these metrics effectively, indicating resilience and potential for recovery. The organization's favorable financial outlook is supported by an upside scenario predicting incremental realized credit gains, which, along with a manageable debt/equity leverage ratio and stable asset yields, positions it well for potential capital appreciation.
Bears say
The financial analysis highlights significant concerns regarding FS KKR Capital Corp's stock, noting that the second quarter net asset value (NAV) per share of $21.93 was approximately 6% lower than the estimated $23.30, indicating underperformance largely attributed to realized and unrealized losses. Additionally, the total fair value of the company's debt investment portfolio declined to $13.65 billion, missing the estimate of $14.15 billion and decreasing from $14.12 billion in the previous quarter, further suggesting potential valuation issues. A downside scenario anticipates a 3% incremental realized credit loss in the investment portfolio, coupled with leverage and yield declines, implying deteriorating conditions that could adversely affect future performance.
This aggregate rating is based on analysts' research of FS KKR Capital Corp and is not a guaranteed prediction by Public.com or investment advice.
FSK Analyst Forecast & Price Prediction
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