Stellus Capital Investment (SCM) has disclosed a new risk, in the Debt & Financing category.
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Stellus Capital Investment faces significant business risks due to fluctuations in interest rates, which could adversely impact the financial condition of its portfolio companies and their end customers. The Federal Reserve’s recent rate cuts in 2024 have added uncertainty, especially with potential further adjustments under the new U.S. presidential administration. This unpredictability complicates Stellus’s ability to secure financing at favorable rates, posing challenges to its growth strategies and future acquisitions. The overarching economic instability may thus have a material adverse effect on the company’s business operations and financial health.
The average SCM stock price target is $13.50, implying -2.24% downside potential.
To learn more about Stellus Capital Investment’s risk factors, click here.