Capital Southwest risk/reward remains attractive, says B. Riley

B. Riley analyst Bryce Rowe believes Capital Southwest’s risk/reward remains attractive with the stock offering a 13% dividend yield and trading at a "meaningful discount" to its two primary internally-managed peers. Capital’s earnings and regular quarterly dividend are likely heading higher, with projected coverage of the regular dividend well in excess of 100% providing a cushion against potential credit quality weakness, and it has attractive liquidity and balance sheet profiles, Rowe tells investors in a research note. He keeps a Buy rating on the shares with a $20 price target.