Truist Lowers its Price Target on FS KKR Capital Corp. (FSK) to $11 from $17 and Maintains a Hold Rating

Core Viewpoint - FS KKR Capital Corp. (NYSE:FSK) is currently viewed as an oversold stock, with analysts lowering price targets following disappointing earnings reports and challenges in its investment portfolio [1][2][3]. Group 1: Analyst Ratings and Price Targets - Truist analyst Arren Cyganovich reduced the price target for FS KKR Capital Corp. to $11 from $17, maintaining a Hold rating due to expected reductions in net interest income linked to increased non-accrual loans [2]. - B. Riley also lowered its price target for FS KKR Capital Corp. to $11 from $17.50, keeping a Neutral rating, citing consistent portfolio headwinds as a concern [3]. Group 2: Financial Performance - FS KKR Capital Corp. reported Q4 adjusted net investment income of $0.52, which was below the consensus estimate of $0.54. The net asset value per share decreased to $20.89 from $21.99 as of September 30, 2025, and $23.64 as of December 31, 2024 [4]. - CEO Michael Forman acknowledged specific challenges with certain investments that negatively impacted results during the second and fourth quarters, emphasizing the investment team's focus on stabilizing these positions while pursuing new opportunities [4]. Group 3: Company Overview - FS KKR Capital Corp. is a business development company that primarily invests in senior secured and, to a lesser extent, subordinated debt of private middle market companies in the United States [5].