UBS has revised its price target for Main Street Capital Corporation (MAIN, Financial), reducing it to $54 from $55, while maintaining a Neutral rating on the stock. This adjustment comes as part of a first-quarter earnings outlook for business development companies. UBS highlights that the primary concern for investors during the earnings release will be the company's credit quality outlook in the face of rising economic uncertainty.
The brokerage notes that the recent downturn in the business development sector has resulted in more attractive valuations. However, it cautions that persistent worries about credit quality and the adverse impact on earnings due to lower short-term rates remain significant challenges.
The reduced price target is attributed to an anticipated decline in return on equity, driven by slower loan growth and reduced target multiples amid prevailing economic uncertainties.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 5 analysts, the average target price for Main Street Capital Corp (MAIN, Financial) is $55.60 with a high estimate of $62.00 and a low estimate of $51.00. The average target implies an upside of 5.40% from the current price of $52.75. More detailed estimate data can be found on the Main Street Capital Corp (MAIN) Forecast page.
Based on the consensus recommendation from 6 brokerage firms, Main Street Capital Corp's (MAIN, Financial) average brokerage recommendation is currently 2.8, indicating "Hold" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Main Street Capital Corp (MAIN, Financial) in one year is $49.12, suggesting a downside of 6.88% from the current price of $52.75. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Main Street Capital Corp (MAIN) Summary page.
