- Capital Southwest secures a second SBIC license, enhancing borrowing capacity.
- Analysts predict a potential 21.75% upside for CSWC, with a target price of $23.57.
- GuruFocus estimates suggest a significant 90.86% upside with a GF Value of $36.95.
Capital Southwest Corporation (NASDAQ: CSWC) has strategically expanded its financial backing by obtaining a second SBIC license from the U.S. Small Business Administration. This expands its borrowing capacity to a substantial $350 million through SBA-guaranteed debentures, which are fixed at a rate slightly above U.S. Treasury Notes. These debentures feature a robust ten-year maturity alongside semi-annual interest payments, highlighting an opportunity for long-term financial stability.
Wall Street Analysts Forecast for CSWC
Wall Street analysts are showing optimism towards Capital Southwest Corp's potential performance. The average one-year price target from 7 analysts is set at $23.57, with the highest prediction reaching $25.00 and the lowest at $20.50. With the current stock price at $19.36, the average target suggests a notable upside of 21.75%. Investors looking for more granular forecast data can explore the Capital Southwest Corp (CSWC, Financial) Forecast page.
The investment sentiment from 8 brokerage firms gives Capital Southwest Corp (CSWC, Financial) an average recommendation rating of 2.4, indicating an "Outperform" status. This score is derived from a scale of 1 to 5, where a score of 1 signifies a "Strong Buy," and 5 signifies a "Sell." This rating suggests confidence in the stock’s near-term growth.
GuruFocus GF Value Insights
According to GuruFocus estimates, the projected GF Value for Capital Southwest Corp (CSWC, Financial) in one year is an impressive $36.95. This figure implies a remarkable upside of 90.86% from the current trading price of $19.36. The GF Value is a calculated figure representing the fair value based on historical multiples, past growth, and expected future performance. Detailed insights can be accessed on the Capital Southwest Corp (CSWC) Summary page, providing investors with a comprehensive overview of the stock’s valuation metrics.
In conclusion, with the acquisition of a second SBIC license and positive evaluations from analysts and GuruFocus, Capital Southwest Corp is positioned for potential growth, making it a stock for investors to watch closely.
