Fidus Investment Corp (FDUS) PT Raised at KBW as 'Prepayment Income Drives Beat'

Keefe, Bruyette & Woods analyst Paul Johnson raised the price target on Fidus Investment Corp (NASDAQ: FDUS) to $21.50 (from $20.00) while maintaining a Market Perform rating.

The analyst commented: "Good Quarter; Prepayment Income Drives Beat; FDUS had another good quarter. NII beat estimates nicely on higher prepayment driven income. FDUS continues to monetize co-investments, even in a tough M&A market, and realized $6M from the sale of an equity investment. Non-accruals declined to 2.9%. FDUS expects less payoff activity in 3Q vs. this quarter. Net leverage was 0.6x and regulatory leverage was 0.5x, so FDUS is well positioned to capture a pickup in M&A activity. We are adjusting our estimates slightly and increasing our price target to $21.50, but maintain our Market Perform on valuation."

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