Stellus Capital Investment (SCM) has disclosed a new risk, in the Debt & Financing category.
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Stellus Capital Investment faces heightened risk due to recent U.S. bank impairments and failures, including those of Silicon Valley Bank and Signature Bank in March 2023, and First Republic Bank in May 2023. These banking issues could disrupt the company’s access to funds, as well as that of its portfolio companies, potentially leading to delayed investments or defaults on debt obligations. The ripple effects of restricted access to capital and increased funding costs pose a serious threat to Stellus Capital’s operations and financial stability. Moreover, the company’s exposure to uninsured deposits above FDIC limits could result in unrecoverable losses, further impacting its business prospects.
The average SCM stock price target is $13.25, implying 2.16% upside potential.
To learn more about Stellus Capital Investment’s risk factors, click here.