Stock Price & Analysis

Sell FSK stock as it has crossed below key moving averages and received analyst downgrades, indicating bearish sentiment. Hold off on buying until more positive trends emerge.

The price prediction for FSK stock in 2025 is $22, driven by analyst expectations and current market sentiment. Analysts have set an average target price of $21.33, with a high estimate of $22.00 and a low of $21.00, indicating a modest upside potential. The current price of $21 reflects a positive pre-market movement of +1.25%, aligning with the slight upward trajectory suggested by analyst consensus.

The S1 support level for FSK Stock is $20.37 ,The R1 resistant level for FSK Stock is $21.45.

As of the end of day on 2025-04-02, the price of FSK Stock was $21.09.

The target price for FSK Stock according to analyst rating is 21.60, with the highest price target at 23.00 and the lowest at 19.00. Analysts have a Hold rating on FSK Stock overall.

The market cap of FSK is $6.0B.

Analysis and Insights

To determine whether FSK is overvalued, we analyze its valuation metrics, analyst sentiment, and recent stock performance.

Valuation Metrics:

FSK's current valuation metrics show mixed signals. The stock has a trailing P/E ratio of 10.40 and an EV/EBITDA of 12.26, which are within reasonable ranges for its industry. However, the price-to-book (P/B) ratio of 0.78 suggests the stock is trading below its book value, indicating potential undervaluation. The dividend yield of 4.89% is attractive but raises concerns about sustainability.

Analyst Sentiment:

Recent analyst actions show mixed sentiment. Wells Fargo downgraded FSK to Underweight with a $19 price target, citing concerns about net asset value decline and dividend uncertainty. However, other firms like RBC Capital and Keefe Bruyette have maintained their Hold ratings with slightly higher price targets, reflecting cautious optimism.

Stock Performance:

FSK's stock has been under pressure, crossing below its 200-day moving average, a bearish technical signal. The stock is trading near $21, below the consensus price target of $21–$22, indicating limited upside potential.

Conclusion:

While FSK is not severely overvalued, its high EV/EBITDA ratio, analyst downgrades, and technical weakness suggest caution. The stock appears fairly valued, but risks like dividend sustainability and net asset value declines could weigh on its price.

FS KKR Capital Corp. is an externally managed, non-diversified, closed-end management investment company, which regulates as a business development company (BDC). It is focused on providing customized credit solutions to private middle market United States companies. Its investment objectives are to generate current income and, to a lesser extent, long-term capital appreciation. Its portfolio is composed primarily of investments in senior secured loans and second lien secured loans of private middle market United States companies and, to a lesser extent, subordinated loans and certain asset-based financing loans of private United States companies. In addition, a portion of its portfolio may be comprised of corporate bonds, structured products, other debt securities and derivatives, including total return swaps and credit default swaps. It invests in sectors, such as financial services, commercial and professional services, among others. It is managed by FS/KKR Advisor, LLC.

The price prediction for FSK stock by 2030 is $30. This forecast is based on current performance, dividend yield, and expected growth.