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On Friday, Raymond (NSE:RYMD) James made an adjustment to the price target for Crescent BDC (NASDAQ:CCAP) shares, reducing it from $20.00 to $17.00, while maintaining an Outperform rating. Currently trading at $15.94, the company shows a P/E ratio of 12.5x and has maintained profitability over the last twelve months according to InvestingPro data. The adjustment came after Crescent Capital BDC, Inc. reported fourth-quarter core results that did not meet the expectations set by Raymond James. The firm’s analyst cited the earlier-than-anticipated wind down of the Logan JV fund as one of several factors contributing to the earnings miss.
The fourth-quarter performance of Crescent BDC was notably below the projections of Raymond James. In response to the results, management pointed to a variety of reasons for the shortfall, including the early conclusion of the Logan JV fund operations, which was not aligned with initial forecasts by Raymond James.
Despite the disappointing quarter, Raymond James continues to recommend Crescent BDC with an Outperform rating. The firm believes that the company presents an attractive risk/reward profile. This outlook is supported by what the firm describes as a "conservatively implemented variable dividend policy." Indeed, InvestingPro data shows that CCAP offers a substantial 12.17% dividend yield and has raised its dividend for 5 consecutive years. The policy is in place for a business development company (BDC) that is currently trading at a slight discount when compared to its peers within the industry, with a price-to-book ratio of 0.81.
The price target revision reflects the latest financial data and market conditions impacting Crescent BDC. The new target of $17.00 per share represents Raymond James’ valuation of the company following the recent developments in its financial performance.
Crescent BDC’s stock performance and future prospects will continue to be monitored by investors and analysts alike, as they assess the impact of the company’s strategic decisions and market dynamics on its valuation. With an overall "GOOD" Financial Health score from InvestingPro and analysts forecasting profitability this year with EPS of $2.05, Raymond James’ maintained Outperform rating indicates a continued confidence in the company’s potential despite the recent hurdles. For deeper insights into CCAP’s valuation and growth prospects, investors can access the comprehensive Pro Research Report, available exclusively to InvestingPro subscribers.
In other recent news, Crescent Capital BDC Inc . announced its Q1 2025 earnings, reporting an earnings per share (EPS) of $0.45, which fell short of the expected $0.5277. The company’s revenue also missed projections, coming in at $42.13 million compared to the anticipated $45.72 million. This earnings report reflects a decrease in net investment income, attributed to lower base rates and reduced non-recurring income. Despite these results, Crescent Capital declared a Q2 2025 dividend of $0.42 per share. The company emphasized its focus on capital preservation and stability, maintaining its commitment to long-term positioning. Analysts from firms like KBW and Raymond James showed interest in the company’s strategy for managing non-accrual loans and its approach to stock buyback programs. Crescent Capital plans to remain selective in new investments, aiming to stabilize its net asset value (NAV) and capitalize on potential market opportunities.
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