From Seekingalpha · The Asian Investor · · 50s
Fidus Investment Stock: Fed Pivot, Solid NII, Premium Valuation
Fidus Investment stock set for premium valuation after Fed rate hikes boost net investment income.
In brief
Fidus Investment stock set for premium valuation after Fed rate hikes boost net investment income. Fidus Investment stock (FDUS) is upgraded to 'Strong Buy' as higher loan yields drive net investment income growth. Originally reported by Seekingalpha.
Fidus Investment Q2 Record Portfolio Value
Fidus Investment achieved a record portfolio value in Q2 driven by disciplined first lien loan originations and robust credit underwriting.
Fed Rate Hikes Boost Net Investment Income
FDUS benefits from the Federal Reserve’s rate increases, positioning it for net investment income growth as higher loan yields materialize.
Upgraded to Strong Buy with Premium Valuation
I upgrade FDUS to 'Strong Buy' ahead of Q3 earnings despite a temporary drop in dividend coverage ratio from supplemental dividends.
What to remember
Fidus Investment stock (FDUS) is upgraded to 'Strong Buy' as higher loan yields drive net investment income growth.
