Bullish indicating open at $55-$60, IPO prices at $37
Investing.com - Keefe, Bruyette & Woods (KBW) raised its price target on Fidus Investment Corp (NASDAQ:FDUS) to $21.50 from $20.00 while maintaining a Market Perform rating.
The firm cited Fidus Investment’s "good quarter" with net investment income (NII) exceeding estimates due to higher prepayment-driven income. Despite challenging merger and acquisition market conditions, Fidus successfully monetized co-investments and realized $6 million from the sale of an equity investment. The company has demonstrated solid performance with 8.2% revenue growth over the last twelve months.
KBW noted that Fidus Investment’s non-accruals declined to 2.9%, indicating improved portfolio quality. The company expects less payoff activity in the third quarter compared to the current period.
The research firm highlighted Fidus Investment’s strong capital position with net leverage at 0.6x and regulatory leverage at 0.5x, positioning the company well to capitalize on any pickup in M&A activity.
Despite the price target increase, KBW maintained its Market Perform rating on Fidus Investment stock, citing valuation as the primary reason for not upgrading the shares.
In other recent news, Fidus Investment Corp reported its second-quarter 2025 earnings, surpassing analysts’ expectations. The company achieved an earnings per share (EPS) of $0.53, slightly above the forecasted $0.52. Additionally, Fidus Investment Corp exceeded revenue projections, reporting $40 million against an anticipated $37.42 million. These results highlight the company’s strong financial performance in the recent quarter. The earnings announcement reflects positively on the company’s operational effectiveness. Investors often look to such earnings reports to gauge the company’s financial health and future potential. These developments are part of Fidus Investment Corp’s ongoing financial narrative.
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