Stellus Capital initiated with a Neutral at Lucid Capital

Lucid Capital analyst Erik Zwick initiated coverage of Stellus Capital (SCM) with a Neutral rating and $13.50 price target While “attracted” to Stellus’ experienced management team, consistent middle market lending strategy, and disciplined underwriting, the firm views shares as fairly valued with the stock up 7.3% year-to-date, outperforming the 1.2% peer return and trading at a price-to-NAV ratio that is above both the BDC’s long-term average and the peer median level, the analyst tells investors.