Truist Maintains Hold on FS KKR Capital (FSK), Lowers Price Target to $17

Core Insights - FS KKR Capital Corp. (NYSE:FSK) is recognized among the 15 stocks with the highest dividend yields for investment opportunities [1] - Truist has maintained a Hold rating on FSK while lowering its price target from $19 to $17, reflecting updated forecasts based on Q3 results [2] - The company reported an Adjusted Net Investment Income of $0.57 per share for Q3, with a Net Asset Value per share increasing to $21.99 [3] Financial Performance - FS KKR Capital generated $0.57 per share of Adjusted Net Investment Income in Q3 [3] - The Net Asset Value per share rose to $21.99, indicating a positive trend in asset valuation [3] - The firm has projected an annualized yield of approximately 10% on its 2026 quarterly distribution plan, aligning with the BDC industry's long-term yield expectations of 9% to 10% [3] Strategic Actions - Daniel Pietrzak, President and Chief Investment Officer, reported a 30% year-over-year increase in evaluated deals, attributed to strong M&A activity and a robust labor market [4] - Notable portfolio actions included the restructuring of Production Resource Group (PRG) and the full repayment of the Callodine Commercial Finance investment, which achieved a 13.3% internal rate of return [4] Company Overview - FS KKR Capital Corp. is a leading publicly traded business development company that focuses on providing tailored credit solutions to private middle-market companies in the US [5]