FS KKR Capital downgraded to Neutral from Buy at Compass Point

Compass Point downgraded FS KKR Capital to Neutral from Buy with a price target of $19.50, down from $21.50. FSK is paying cash distributions that offer investors “a nice buffer against risk when they are cashing checks for more than 15% of the current share price” and demonstrating “solid operational performance,” but persistent credit issues argue for a lower valuation target, the analyst stated. If FSK can stem the continual losses in the portfolio, then “we would look for an expanded valuation,” the analyst added.