B. Riley analyst Bryce Rowe upgraded Stellus Capital to Neutral from Sell with a price target of $13.25, up from $12.50, following the Q1 report. The company’s balance sheet leverage has declined modestly since Q3 of 2023 and it has a sufficient liquidity position as well as prospects for additional realized gains, the analyst tells investors in a research note. The firm pegs Stellus Capital;s available liquidity at $127M, or 15% of the portfolio, and notes the company has the ability to raise equity via the at-the-market offering, given that it trades above net asset value.
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