Capital Southwest upgraded on recent pullback at B. Riley

B. Riley analyst Bryce Rowe upgraded Capital Southwest to Buy from Neutral with an unchanged price target of $20. Business development companies face a "higher interest-rate-fueled earnings tailwind," which has led to dividend increases across the sector and to healthy coverage of regular dividends, Rowe tells investors a research note. The analyst believes this should support valuations above the "cycle-to-date low." The share price weakness in Capital Southwest has created a buying opportunity, contends Rowe.