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Investing.com - Raymond (NSE:RYMD) James has raised its price target on Capital Southwest Corp (NASDAQ:CSWC) to $25.00 from $23.00 while maintaining an Outperform rating on the business development company. The stock, currently trading at $22.50, has shown strong momentum with a 10.41% YTD return according to InvestingPro data.
The price target increase follows Capital Southwest’s F1Q26 (June quarter) results, which Raymond James noted were in-line with expectations as previously pre-released.
Raymond James highlighted that Capital Southwest produced "a solid quarter of earnings" and increased its spillover to $1.00 per share.
The firm sees "an attractive risk/reward" profile for Capital Southwest, noting it is a "lower leverage BDC producing materially higher than average ROEs."
The analyst’s comments indicate confidence in Capital Southwest’s financial performance and potential for continued strong returns despite its conservative leverage approach.
In other recent news, Capital Southwest Corporation announced its Q1 2025 earnings, revealing a mixed performance in key financial metrics. The company reported earnings per share (EPS) of $0.59, which fell short of the forecasted $0.5964. However, Capital Southwest exceeded revenue expectations, reporting $55.95 million compared to the anticipated $54.34 million. These recent developments highlight the company’s ability to surpass revenue forecasts despite missing EPS estimates. The earnings announcement came without any major updates on mergers or acquisitions. Analyst assessments from firms were not detailed in the latest news, leaving investor focus primarily on the earnings and revenue results. No significant analyst upgrades or downgrades were mentioned in conjunction with the earnings release. These financial results provide investors with a snapshot of Capital Southwest’s current fiscal health.
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