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Investing.com - Fidus Investment Corp (NASDAQ:FDUS), a $756 million market cap company trading at a P/E ratio of 9.2x, received a Buy rating from Clear Street, which initiated coverage with a $21.00 price target on Thursday.
Clear Street cited Fidus’s strong track record as a disciplined lower middle market lender, highlighting the company’s NAV growth, consistent dividend coverage with a current yield of 10.6%, and resilient credit performance throughout market cycles. According to InvestingPro, the company has maintained dividend payments for 15 consecutive years.
The research firm noted that Fidus maintains a well-diversified portfolio with minimal non-accruals and balanced exposure across unitranche and first lien loans, with management focusing on sponsor-backed companies in defensive sectors.
Clear Street’s analysis emphasized Fidus’s robust liquidity position and conservative leverage approach, which supports the company’s shareholder-friendly dividend policy.
The firm expressed confidence that Fidus is well-positioned to deliver attractive income for investors while offering potential for capital appreciation, supported by its 8.2% revenue growth in the last twelve months.
In other recent news, Fidus Investment Corp reported its second-quarter 2025 earnings, surpassing analysts’ expectations. The company achieved an earnings per share of $0.53, slightly above the forecasted $0.52. Additionally, Fidus exceeded revenue projections, reporting $40 million compared to the expected $37.42 million. Keefe, Bruyette & Woods (KBW) responded by raising its price target for Fidus Investment to $21.50 from $20.00, maintaining a Market Perform rating. The firm attributed this adjustment to Fidus’s strong quarter, noting net investment income exceeded estimates due to higher prepayment-driven income. Despite a challenging merger and acquisition market, Fidus successfully monetized co-investments and realized $6 million from the sale of an equity investment. These developments reflect positive momentum for the company.
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