New SuRo Capital Price Target After Rebrand Announcement

On Tuesday night, SuRo Capital (SSSS) delivered its Q1 2026 results and in our view the results were largely in line with expectations built by the company’s April 7 preliminary investment portfolio update for the quarter.

Net asset value per share came in at $14.24 for the quarter, the midpoint of the $14.00 to $14.50 range discussed in early April, and one that reflects the several capital raises for SuRo holdings, including OpenAI, Whoop, Vast Data and others.

All in all, it went very much as expected, and that includes SuRo revisiting its early April announcement for plans to transition to an externally managed structure in the form of a joint venture between SuRo and Magnetar. The $18 billion dollar assets under management Magnetar will provide access to greater deal flow and due diligence capabilities and will invest $20 million into the company.

What we learned on Tuesday night is that the shareholder vote for this will be held on June 10, and we expect it to be easily passed. On July 1, SuRo will rebrand to Neostellar and remain a publicly traded business development company focused on high-growth, venture-backed private companies. Our guess for a new stock ticker is NSTR but that assumes some other company hasn’t already registered it.

We also learned that subsequent to the end of Q1 2026, SuRo invested $9.5 million in ClickHouse, Inc., a company sits at the intersection of data infrastructure, artificial intelligence and real-time analytics. ClickHouse customers include Meta (META) , Tesla (TSLA) , Uber (UBER) , Cisco (CSCO) , Netflix (NFLX) , LinkedIn and Anthropic. SuRo also invested a small amount, around $0.2 million, in enterprise security company Huntress Labs.

At the end of the quarter, Suro had about $46 million of liquid assets, including approximately $43.3 million in cash and about $2.7 million in unrestricted public securities. In addition, it also held about $15.9 million of public securities subject to lockup or other sales restrictions, which was its remaining investment in CoreWeave (CRWV) .

In past discussions about SuRo, we’ve flagged the company’s outstanding debt and the need to repay it. As we learned on Tuesday night, subsequent to quarter end, the purchaser of 6.5% convertible notes due 2029 elected to exercise their conversion option and convert a total of $5 million of principal into 682,815 shares of SuRo Capital's common stock. That puts the remaining balance of those 6.5% convertible notes at $30 million.

SuRo still has about $35 million in 6.00% notes due by the end of this year, a potential $15 million investment commitment in TensorWave, and most likely other investments the team is assessing. That explains the lack of news on the dividend front, and we’re thinking the $43.3 million in cash on the balance sheet plus the $15.9 million in remaining CRWV shares is enough to address the 6.00% notes, the incremental TensorWave investment, and then some.

While it’s possible that could give rise to a dividend announcement, we doubt that SuRo is looking to exhaust all of its cash. That has us thinking we’re not likely to see a dividend announcement until after Magnetar makes its investment, which would re-arm the company’s cash position and enhance its ability to make new investments.

Our SuRo Price Target

At the current share price, SuRo shares are trading at discount to the company’s net asset value per share of $14.24. We’ve argued many times in the past the company’s shares should trade at a premium and that is leading us to nudge our SSSS target to $17 from $16.

To lift our price target demonstratively higher, we will need to see further step up in the company’s net asset value. Coming off the multiple capital raises associated with its portfolio holdings in Q1 2026, the odds of another massive step up in that net asset value during the current quarter is unlikely. In the second half of 2026 and 2027, there are some catalysts, including potential IPOs for OpenAI, Vast Data, Whoop and other holdings, that could deliver such a step up.

SSSS shares have been a wonderful performer for the Portfolio, up more than 80%, and as you know we’ve prudently locked in some of those gains. Recognizing what’s down the line, we will be patient with SSSS shares and continue to watch both IPO filings as well as capital raising efforts from others in the SuRo portfolio. Given that portfolio spans 36 companies, there is always the possibility for an M&A event as well. At the same time, we will continue to bend the knee to our portfolio discipline.

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At the time of publication, TheStreet Pro was long SSSS, META and NFLX shares.