Wall Street Sees a 26% Upside to Capital Southwest (CSWC)

Core Insights - Capital Southwest Corporation (CSWC) is identified as a high growth stock with significant upside potential, with an average price target suggesting a 7% increase and a Street high indicating a 26% upside [1][2] - The company reported strong financial results for the second fiscal quarter, with total investment income of $56.9 million, an increase from $55.9 million in the previous quarter [2] Financial Performance - For the quarter ended September 30, 2025, CSWC invested approximately $245 million in 7 new and 10 existing portfolio companies [2] - The company raised $350 million through 5.950% unsecured bonds and nearly $40 million in equity capital during the same quarter [2] - CSWC announced monthly dividend payouts of $0.1934 per share until December 2025, along with a bonus quarterly dividend of $0.06 per share to be distributed in December [2] Investment Strategy - CSWC focuses on investing in middle-market companies through credit, private equity, and venture capital, emphasizing growth, buyouts, and recapitalizations [3] - The company avoids investments in startups, public companies, real estate, oil and gas exploration, or struggling businesses [3]