FS KKR Capital initiated with Buy on valuation discount at B. Riley

B. Riley analyst Bryce Rowe last night initiated coverage of FS KKR Capital with a Buy rating and $21 price target. The analyst sees the risk/reward profile as favoring reward, saying the stock’s “deep” valuation discount should likely limit downside. The firm also sees a supportive earnings backdrop, a dividend yield of 14% based on projected dividends, and an attractive capital structure. Riley believes FS KKR’s valuation discount is “too attractive to pass up.”