An analyst at Lucid Capital said that Main Capital’s preliminary Q4 guidance included “robust” net interest income, investment performance and net asset value growth both above Street estimates.
- Lucid Capital raised the firm’s price target on Main Street to $65 from $60.
- Main Street said its preliminary estimate of fourth quarter 2025 net investment income is $1.01 to $1.05 per share.
- It sees its net asset value rise between 1.5% to 1.8% on a sequential basis.
Main Street Shares rose on Thursday after it reported preliminary estimates for fourth quarter (Q4) that prompted an analyst to raise the price target on the company’s stock.
“Our preliminary operating results highlight that our fourth quarter performance resulted in another quarter of strong operating results, including favorable distributable net investment income per share and a new record for net asset value per share for the fourteenth consecutive quarter,” Main Street’s CEO Dwayne L. Hyzak said.
“We also produced extremely strong fourth quarter investment activity in our unique lower middle market investment strategy, resulting in an annual record for gross investments of approximately $700 million in 2025,” he added.
Q4 Prelim estimates
Main Street said its preliminary estimate of fourth quarter 2025 net investment income is $1.01 to $1.05 per share. It sees Q4 net asset value (NAV) per share of $33.29-$33.37, representing a 1.5% to 1.8% rise on a sequential basis.
The estimated NAV per share increase is primarily due to the net fair value increase of the investment portfolio, the company said. The rally in the equities market at the end of last year has helped firms who invest client’s money in the capital market as they saw the value of assets of their clients go up as a result of the market rally.
The company is expected to post its full results in late February, the company said.
Analyst Action
Lucid Capital raised the firm’s price target on Main Street to $65 from $60 and kept a ‘Neutral’ rating on the shares, as per TheFly.
The company’s preliminary Q4 guidance included “robust” net interest income, investment performance and net asset value growth both above Street estimates, the note said. However, the firm believes Main Street’s valuation largely reflects its earnings power and growth potential.
How Did Stocktwits Users React?
Retail sentiment around MAIN trended in ‘bearish’ territory amid ‘high’ message volume.
Shares of Main Street Capital have risen almost 10% over the past year.