Truist flags higher non‑accruals loans at FS KKR Capital, cuts PT

FS KKR Capital

04/03/2026 13:02

** Truist Securities cuts PT on business development company FS KKR Capital Corp FSK.N to $11 from $17

** New PT still reflects a 0.5% upside to the stock's last close

** Brokerage also lowers 2026 NII per share est to $2.94 from $3; says sharp reduction in 2026 NII reflects increased non-accrual loans and higher interest expense

** "Our target multiple reflects a large discount to BDC peers in line with recent trading levels, and we believe shares will be challenged while it works out its recently elevated non-accrual loans" - Truist

** Last month, co also lowered dividend to 48 cents from 70 cents in Q4 from Q3

** One of 11 analysts rate stock "strong buy" and ten "hold"; their median PT is $15 - data compiled by LSEG

** As of last close, FSK down 26% YTD

 (Reporting by Pragyan Kalita in Bengaluru)

 ((Pragyan.Kalita@thomsonreuters.com;))