FS KKR Capital price target lowered to $19 from $21.50 at B. Riley

B. Riley lowered the firm’s price target on FS KKR Capital (FSK) to $19 from $21.50 and keeps a Neutral rating on the shares following a transfer in coverage. The firm transferred coverage of the business development companies. While credit trends remain broadly stable across most portfolios and dividend coverage “appears supported,” tighter spreads, lower prepayment activity, and “tapered” forecasts of origination activity are weighing modestly on near-term earnings visibility, the analyst tells investors in a research note. The firm’s Buy ratings reflect “differentiated” origination strategies, favorable returns on equity, and stable-to-improving portfolio metrics. Riley names Trinity Capital (TRIN), Sixth Street Specialty Lending (TSLX), and Blue Owl Capital (OBDC) its top BDC ideas.