SCM - Stellus Capital cut to Market Perform at RayJay as stock is fairly valued

• Raymond James on Thursday downgraded Stellus Capital Investment ( NYSE: SCM ) to Market Perform from Outperform after the middle-market investment firm's earnings report as it believes the stock is fairly valued at 1.1x NAV.
• Shares of Stellus ( SCM ) fell as much as 6% in morning trade.
• "We believe there is very low risk to the dividend over the 2023-2024 period, and the income opportunity remains attractive," the research firm noted. "But we believe there is limited capital appreciation upside."
• Raymond James said Stellus' ( SCM ) net investment income beat was driven by greater than expected fee income.
• Its estimates for Stellus' ( SCM ) core NII/share are $1.84 in 2023 and $1.56 in 2024.
• Meanwhile, SA Quant rates the stock Hold while sell-side ratings are largely bullish .
• Dig into details of Stellus' ( SCM ) earnings report .

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