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Investing.com - JMP Securities raised its price target on Hercules Capital Inc (NYSE:HTGC) to $24.00 from $22.00 on Monday, while maintaining a Market Outperform rating on the business development company. The new target falls within the broader analyst range of $19-25, according to InvestingPro data.
The price target increase follows what JMP described as "another impressive quarter" from Hercules Capital, highlighting the company’s industry-leading position within both the venture lending market and the broader BDC sector. The company maintains a robust 9.87% dividend yield and has maintained dividend payments for 21 consecutive years, as revealed by InvestingPro data.
JMP noted that as Hercules Capital continues to scale, its competitive advantages will likely expand, driving continued outperformance through market cycles for all stakeholders.
The research firm pointed to Hercules Capital’s "healthy underlying fundamentals," suggesting they may be among the strongest in JMP’s entire BDC coverage universe.
Despite these positive fundamentals, JMP observed that Hercules Capital stock has underperformed recently, declining approximately 10% over the past six months.
In other recent news, Hercules Capital reported its second-quarter 2025 earnings, which presented a mixed financial picture. The company announced an earnings per share (EPS) of $0.50, exceeding analysts’ expectations of $0.47, resulting in a 6.38% positive surprise. Despite this earnings success, Hercules Capital’s revenue was $88.7 million, significantly below the anticipated $128.89 million, missing the mark by 31.18%. This disparity between the earnings and revenue figures has generated varied reactions in the market. While the earnings beat suggests operational efficiency, the revenue shortfall indicates potential challenges in sales or client acquisition. Investors are closely monitoring these developments for further insights. Analysts and investors alike are evaluating these results to understand the broader implications for Hercules Capital’s future performance.
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