FSK, US3026352068

Wells Fargo downgrades FS KKR Capital stock to Underweight

Published on 10/05/2026 at 11:59 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

Second-quarter revenue was USD 290.00 million versus USD 284.33 million. FS KKR Capital stock costs EUR 9.78 versus EUR 9.74 on October 5, 2026.

FSK, US3026352068, Illustration mit AI erstellt.

FS KKR Capital (US3026352068) was trading at EUR 9.78 at Lang & Schwarz on October 5, 2026 at 11:51 a.m. CEST, up 0.41 percent versus the EUR 9.74 prior close. The latest company-specific catalyst is a Wells Fargo downgrade dated September 29, 2026, which moved the rating from Equal Weight to Underweight while keeping the price target at USD 10.00.

Credit concerns shape downgrade

As Investing.com reported on September 29, 2026, Wells Fargo cited credit concerns and described FS KKR Capital as being in de-risk mode. The report said non-accrual exposures totaled USD 897.0 million at cost and USD 430.0 million at fair value, figures that frame the pressure behind the weaker rating.

The same report said the company traded at a discount that was 23.00 percentage points wider than its five-year average discount. It also identified a partial incentive-fee waiver as a temporary support factor through the second quarter of 2027, creating a measurable counterweight to the credit concerns.

Second-quarter figures beat estimates

For the second quarter of 2026, revenue reached USD 290.00 million against a USD 284.33 million consensus estimate, according to Investing.com. That comparison represents a USD 5.67 million revenue beat, while diluted earnings per share were negative USD 0.13 and net income attributable to common shareholders was negative USD 34.0 million for the same period.

The earnings profile is mixed rather than one-dimensional. The second-quarter 2026 revenue result exceeded expectations, but total assets fell from USD 12.8 billion in the first quarter of 2026 to USD 12.0 billion in the second quarter, a decline of USD 0.8 billion.

Stock price and valuation

FS KKR Capital closed at USD 10.97 on the NYSE on October 2, 2026 at 4:00 p.m. EDT. Its 52-week range was USD 9.72 to USD 16.31, while market capitalization stood at USD 3.1 billion on October 2, 2026.

Price holds above prior close

At Lang & Schwarz, FS KKR Capital was trading at EUR 9.78 on October 5, 2026 at 11:51 a.m. CEST, plus 0.41 percent versus the EUR 9.74 prior close. The modest positive move contrasts with the recent credit-focused downgrade and leaves the latest euro quotation below the USD 10.00 Wells Fargo target on a different currency basis.