Wells downgrades Cion to Underweight on dividend cut fears

Wells Fargo analyst Finian O’Shea downgraded Cion Investment (CION) to Underweight from Equal Weight with a price target of $10, down from $11. The firm cites the company’s increased likelihood of a base dividend cut in 2025 for the downgrade. Cion did not earn its dividend in Q4, despite a bevy of “one-time” fee income and payment-in-kind reversals, and its high net leverage is likely to set a “high-water-mark,” the analyst tells investors in a research note.