Truist Securities raises Main Street Capital stock price target to $64 on LMM strategy success

Published 11/08/2025, 15:42
Truist Securities raises Main Street Capital stock price target to $64 on LMM strategy success

Investing.com - Truist Securities raised its price target on Main Street Capital (NYSE:MAIN) to $64.00 from $54.00 on Monday, while maintaining a Hold rating on the stock. The company, currently trading at $66.13 and sporting a market capitalization of $5.9 billion, has seen its shares surge 45.75% over the past year.

The firm cited the company’s "continuing to shine" Lower Middle Market (LMM) strategy as a key factor in the price target increase, along with strong performance and continued momentum in realized gains from its LMM portfolio. The company’s success is reflected in its impressive 19-year dividend maintenance track record, currently offering a 6.03% yield. According to InvestingPro, Main Street Capital has raised its dividend for 4 consecutive years, with several more positive indicators available to subscribers.

Truist Securities increased its 2025 Net Investment Income (NII) per share estimate to $4.06 from $3.92 and its 2026 estimate to $3.92 from $3.84, reflecting expected portfolio growth and the benefit of higher stock price in future equity issuance.

The new price target is based on applying a price-to-NAV multiple of 2.0x to Truist’s 2026 estimated Net Asset Value, up from the previous multiple of 1.7x.

Despite the significant price target increase, Truist maintained its Hold rating, noting that "valuation may be getting a bit stretched at this level," while acknowledging that Main Street Capital’s track record of growing both its NII per share and NAV per share warrants a premium.

In other recent news, Main Street Capital Corporation reported its Q2 2025 earnings, meeting expectations with an earnings per share (EPS) of $0.99. The company’s revenue exceeded forecasts, reaching $144 million, which was a 5.04% surprise. This financial performance indicates a strong quarter for Main Street Capital, demonstrating robust revenue growth. These developments reflect positively on the company’s strategic direction and financial health. While the stock price movement is not discussed here, the earnings results suggest investor confidence. Analysts had projected these earnings, and Main Street Capital met those expectations. This recent performance highlights the company’s ability to align with market predictions.

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