Summary: Wells Fargo adjusted its financial outlook for Prospect Capital (NASDAQ:PSEC), reducing the price target to $5 from $5.50 while maintaining an Underweight rating due to a shift in financing strategy towards floating rate preferences. The firm projects downward revisions in net operating income estimates for fiscal years 2024 and 2025, attributing it to lower income from CLOs and changes in the SOFR curve. Despite this, potential upside is noted through accelerated CLO rotation or increased income from controlled companies.
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