In a report released yesterday, Finian O’Shea from Wells Fargo maintained a Sell rating on TriplePoint Venture Growth (TPVG – Research Report), with a price target of $5.50.
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Finian O’Shea has given his Sell rating due to a combination of factors impacting TriplePoint Venture Growth’s financial outlook. The company’s recent net operating income (NOI) fell short of expectations, coming in at $0.27 compared to the anticipated $0.30, which raises concerns about its earnings potential. Although the net asset value (NAV) remained stable, the lower NOI and dilutive dividend reinvestment plan (DRIP) are seen as negative influences on the company’s financial health.
Additionally, while there are some credit positives, such as the sale of a small stake in Revolut and an upgrade for Outfittery, the overall funding environment appears challenging. The company’s target leverage increase and near-term debt maturities present further risks. Moreover, the downward revision of NOI estimates for the coming years reflects a cautious outlook, with the price target set at $5.50, indicating limited upside potential. These factors contribute to the decision to maintain an Underweight rating.