
FSK Stock Forecast & Price Target
FSK Analyst Ratings
Bulls say
FS KKR Capital Corp's portfolio consists predominantly of senior secured and second lien secured loans, which aligns well with its objective of generating current income and long-term capital appreciation, positioning the company favorably within the private middle market sector. Despite an increase in non-accruals to 5.3% of the portfolio on an amortized cost basis from 3.5% in the previous quarter, the company had previously shown an ability to reduce these non-accruals, indicating a potential for recovery as issues affecting specific portfolio companies are addressed. Additionally, the positive upside scenario presented – based on incremental realized credit gains, a favorable debt/equity leverage ratio, and an increase in average asset yield – further reinforces the optimistic outlook for the company's financial performance moving forward.
Bears say
FS KKR Capital Corp's negative outlook is underscored by a reported 2Q NAV per share of $21.93, which was approximately 6% below the estimated $23.30, primarily due to realized and unrealized losses during the quarter. Furthermore, the total fair value of the company's debt investment portfolio decreased to $13.65 billion, falling short of the $14.15 billion estimate and declining from $14.12 billion in the previous quarter. Additionally, a downside scenario suggests potential increased credit losses of 3% in the investment portfolio, alongside concerns regarding leverage and a decrease in average asset yield.
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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