Piper Sandler Downgrades Hercules Capital Inc (HTGC) to Neutral

Piper Sandler analyst Crispin Love downgraded Hercules Capital Inc (NYSE: HTGC) from Overweight to Neutral with a price target of $17.50 (from $20.50).

The analyst comments: "We are downgrading HTGC to Neutral from OW following 4Q25 earnings. While results were solid and credit quality improved, HTGC's software exposure is 35% and could face negative headlines, noise, and potential difficulty in business models with AI disruption a risk. We continue to view Hercules as one of the best underwriters in tech lending, but we believe near-term returns will be driven primarily by the dividend given macro uncertainty and volatility rather than share appreciation. Given Hercules' elevated software exposure and premium valuation, we believe moving to Neutral makes sense. We are decreasing 2026/2027 estimates to $1.95/$1.90 from $1.98/$1.91. We are lowering our PT to $17.50 from $20.50, based on 140% (165% prev.) our NAV estimate with lower multiple driven by peer multiple contraction and potential risks from software exposure."

For an analyst ratings summary and ratings history on Hercules Capital Inc click here. For more ratings news on Hercules Capital Inc click here.

Shares of Hercules Capital Inc closed at $16.60 yesterday.

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