FSK's Price Target Cut to $15.00 by Wells Fargo Analyst

Wells Fargo analyst Finian O'Shea has lowered the price target for FS KKR Capital (FSK) to $15.00, a 16.67% decrease from the previous target of $18.00. The analyst maintained an "Underweight" rating. This update reflects the analyst's reassessment of the company's financial outlook. The change in price target comes on the heels of similar adjustments by other analysts in recent months.

Several analysts have revised their price targets for FS KKR Capital (FSK), with Wells Fargo analyst Finian O'Shea lowering the price target to $15.00, a 16.67% decrease from the previous target of $18.00. The analyst maintained an "Underweight" rating, reflecting a reassessment of the company's financial outlook [1]. This update comes on the heels of similar adjustments by other analysts in recent months, indicating a shift in market sentiment.

FS KKR Capital reported earnings per share (EPS) of $0.60 for the quarter, missing analysts' consensus estimates of $0.63 by ($0.03). The company's return on equity (ROE) stood at 11.78%, and the net margin was 31.53%. Revenue for the quarter was $398.00 million, compared to analysts' expectations of $402.00 million [1]. Despite these figures, the company declared a quarterly dividend of $0.70 per share, an increase from the previous quarterly dividend of $0.64. This represents a $2.80 dividend on an annualized basis and a dividend yield of 14.9% [1].

Wells Fargo's adjustment follows a series of revisions by other analysts. JPMorgan Chase & Co. decreased their price objective on FS KKR Capital from $22.00 to $19.00 and set a "neutral" rating on the stock [1]. Royal Bank Of Canada decreased their price target from $22.00 to $21.00 and set a "sector perform" rating on the stock [1]. B. Riley assumed coverage on FS KKR Capital, setting a "neutral" rating and a $19.00 price target [1]. Oppenheimer cut their price objective from $22.00 to $21.00 and set a "market perform" rating on the stock [1]. The consensus price target is now at $19.50 [1].

FS KKR Capital's financial health metrics include a debt-to-equity ratio of 1.22, a current ratio of 2.09, and a quick ratio of 2.09. The company's market capitalization stands at $5.26 billion, with a price-to-earnings ratio of 9.90 and a beta of 0.93 [1]. Analysts from GuruFocus estimate the GF Value for FS KKR Capital to be $50.37 in one year, suggesting a significant upside of 165.59% from the current price of $18.965 [2].

Despite the mixed financial outlook, FS KKR Capital continues to maintain a strong dividend yield and has seen significant institutional investment. Several institutional investors, including Franklin Resources Inc. and Peapack Gladstone Financial Corp., have increased their holdings in the company [1].

References:
[1] https://www.marketbeat.com/instant-alerts/fs-kkr-capital-nysefsk-shares-gap-down-following-weak-earnings-2025-08-07/
[2] https://www.gurufocus.com/news/3045637/fs-kkr-capital-corp-fsk-reports-q2-2025-financial-results