Wells Fargo analyst Finian O'Shea upgraded BlackRock Capital Investment to Outperform from Market Perform with a $5.50 price target. The analyst says that with the shares now having steeped to $4.63, or 0.72 times net asset value, he thinks "that odds are the stock works." The legacy business has been managed and written down, forward earnings "look attractive and stable," and last quarter's dividend cut and management fee raise "likely flushed out more hands," O'Shea tells investors in a research note. Further, the analyst believes BlackRock Capital's platform is improving on credit and origination through its direct lending investment. He is calling the bottom in the shares.