2024-02-02 08:30:00 ET
Summary
- Capital Southwest reported strong Q3 earnings, beating estimates for net investment income and total investment income.
- The company has continued to grow its portfolio and strengthen its balance sheet, increasing liquidity and expanding its credit facility.
- While the stock is currently overvalued, it remains a must-have for income investors and may offer a more attractive entry point after potential rate cuts.
- At the current price, the stock offers a downside to the WS price target of $23.75. I suggest investors looking to start or add to their position wait for a pullback.
- The BDC did see a small increase in non-accrual loans quarter-over-quarter.
Introduction
Read the full article on Seeking Alpha
For further details see:
Capital Southwest Q3: A Must-Have For Income Investors But Wait For A Pullback