Hercules Capital downgraded to Neutral from Overweight at Piper Sandler

Piper Sandler downgraded Hercules Capital (HTGC) to Neutral from Overweight with a price target of $17.50, down from $20.50, following the Q4 report. Hercules’ software exposure is 35% and could bring “negative headlines, noise, and potential difficulty in business models with AI disruption a risk,” the analyst tells investors in a research note. Piper continues to view Hercules as one of the best underwriters in technology lending, but believes its near-term returns will be driven primarily by the dividend given macro uncertainty and volatility rather than share appreciation.