FS KKR Capital downgraded to Equal Weight from Overweight at Wells Fargo

Wells Fargo analyst Finian O’Shea downgraded FS KKR Capital (FSK) to Equal Weight from Overweight with an unchanged price target of $21. The stock’s discount to the business development company sector has compressed, creating less valuation upside, the analyst tells investors in a research note. In addition, Wells sees some risks to FS KKR’s credit, noting the company has $448M of loan content market below 90%.