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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 its Market Outperform rating on the business development company. The new target represents significant upside potential from the current price of $19.37, with InvestingPro data showing the company maintains a healthy P/E ratio of 12.65 and an impressive dividend yield of 9.87%.
The price target increase follows what JMP described as "another impressive quarter" from Hercules Capital, highlighting the company’s industry-leading position in both the venture lending market and the broader BDC sector.
JMP believes Hercules Capital’s competitive advantages will expand as the company scales further, potentially driving continued outperformance through market cycles for all stakeholders.
The research firm noted that despite Hercules Capital’s strong fundamentals, which JMP considers among the best in its BDC coverage, the stock has underperformed recently, declining approximately 10% over the past six months.
Hercules Capital specializes in providing venture debt financing to growth-stage companies, particularly in technology and life sciences sectors.
In other recent news, Hercules Capital reported its second-quarter 2025 earnings with mixed results. The company achieved an earnings per share of $0.50, exceeding analysts’ expectations of $0.47, marking a 6.38% positive surprise. However, its revenue of $88.7 million was significantly below the forecasted $128.89 million, resulting in a 31.18% miss. This divergence between earnings and revenue has drawn varied reactions from the market. Additionally, JMP Securities raised its price target for Hercules Capital to $24 from $22, maintaining a Market Outperform rating. JMP cited the company’s strong fundamentals and its leading position in the venture lending market as reasons for the price target increase. These developments indicate ongoing interest and scrutiny from analysts and investors alike.
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