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Investing.com - Lucid Capital Markets initiated coverage on Oxford Square Capital Corp (NASDAQ:OXSQ) with a Neutral rating and a $1.75 price target, representing 85% of the company’s current net asset value (NAV). The stock, currently trading at $1.59, sits near its 52-week low of $1.56, having declined about 33% over the past year.
The business development company (BDC) currently trades at 77% of its NAV, below the peer average of 84%, according to Lucid Capital Markets’ analysis.
The $1.75 price target translates to a 24% dividend yield based on Lucid’s expectations for next-twelve-months regular dividends of $0.42, compared to the peer group median dividend yield of 10.4%.
Lucid Capital Markets expressed a favorable view of Oxford Square’s management team and their efforts to rebuild earnings power with the goal of achieving full dividend coverage.
The firm cited Oxford Square’s asset-sensitive balance sheet and higher-than-average nonaccruals as key factors for its neutral stance, noting it might become more constructive following positive developments in dividend coverage or reduction in nonaccruals and watch list credits.
In other recent news, Oxford Square Capital Corp. announced its second-quarter earnings for 2025. The company reported earnings per share (EPS) of 8 cents, aligning with analysts’ expectations. However, revenue came in at $9.52 million, which was below the anticipated $10 million, indicating a 4.8% shortfall. This revenue miss highlights a challenge for the company in meeting market expectations. The earnings call did not mention any mergers or acquisitions, which could be of interest to investors looking for growth opportunities. Analyst upgrades or downgrades were not reported in the recent updates. These developments are part of the ongoing financial narrative for Oxford Square Capital Corp. Investors may want to keep an eye on future earnings reports for further insights.
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