SuRo Capital stock price target raised to $10 from $7 at BTIG on AI portfolio gains

Published 01/07/2025, 11:48
SuRo Capital stock price target raised to $10 from $7 at BTIG on AI portfolio gains

Investing.com - BTIG has raised its price target on SuRo Capital Corp. (NASDAQ:SSSS) to $10.00 from $7.00 while maintaining a Buy rating on the stock. The company’s shares, currently trading at $8.21, have delivered impressive returns of 108% over the past year, according to InvestingPro data.

The increase comes as SuRo’s portfolio companies have significantly appreciated in value, particularly its top holding CoreWeave (CRWV), which has seen its shares rise approximately 200% since SuRo reported first-quarter 2025 results less than two months ago. With a beta of 1.81 and strong momentum scores noted on InvestingPro, the stock has shown notable volatility and momentum potential.

In dollar terms, SuRo’s CoreWeave holding has increased by $67 million since the first-quarter report, representing $2.83 per SuRo share, according to BTIG’s analysis.

Another portfolio company, VAST Data, is reportedly raising funds at a $25 billion valuation, substantially higher than the approximately $9 billion valuation at which BTIG believes SuRo initially invested.

BTIG estimates SuRo’s mark-to-market net asset value (NAV) at nearly $11 per share, indicating the stock is trading at approximately 25% discount to NAV at Monday’s closing price, with the firm’s new price target based on a roughly 10% discount to mark-to-market NAV. The company maintains strong liquidity with a current ratio of 10.91, suggesting ample coverage of short-term obligations.

In other recent news, SuRo Capital Corp reported a slight decrease in its Net Asset Value (NAV) for the first quarter of 2025, with the NAV standing at $156.8 million, or $6.66 per share, down from $6.68 per share at the end of the previous year. The company’s strategic focus remains on AI and AI-adjacent investments, with significant activities including a $5 million investment in Plaid and follow-on investments in WHOOP and Orchard. SuRo Capital anticipates substantial revenue growth for OpenAI, one of its key investments, with projections reaching $13 billion in 2025 and $174 billion by 2030. The company also highlighted OpenAI’s recent $40 billion funding round at a $300 billion post-money valuation, marking a significant step up from its previous valuation. Additionally, CoreWeave, another portfolio company, completed a major IPO, raising $1.5 billion at a valuation of approximately $23 billion. Analyst discussions revealed a strong focus on AI infrastructure, with firms like BTIG expressing interest in SuRo Capital’s strategic direction. Despite market volatility, SuRo Capital remains committed to leveraging opportunities in AI, aiming to deliver long-term value for its stakeholders.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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