Piper Sandler adjusted its outlook for TriplePoint Venture Growth (NYSE: NYSE: ) and lowered its price target to $8.00 from $9.50, but maintained a neutral rating on the stock.
The revision follows TriplePoint’s recent results, in which it reported weaker than expected profits due to lower interest income and higher operating expenses, marking the fifth consecutive quarter in which the company’s portfolio has shrunk as prepayments outpaced new loans.
The company:Thursday, He also noted that TriplePoint reduced its quarterly dividend to $0.30 from $0.40. Net investment income for the second quarter of 2024 was reported at $0.33.
Piper Sandler acknowledged that TriplePoint has significantly improved its liquidity and leverage position despite current challenges, but growth expectations remain low compared to historical levels.
Piper Sandler lowered its earnings per share forecast for TriplePoint in 2024 and 2025 to $1.42 and $1.49, respectively, from $1.66 and $1.80.
The new target price represents about 85% of the company’s second-quarter 2025 net asset value estimate, down from 90% previously.
The investment firm expects Triple Point’s shares to fall on Thursday due to lower net investment income, a cut in its dividend and weaker future profitability.
InvestingPro Insights
Following Piper Sandler’s recent adjustment to TriplePoint Venture Growth’s (NYSE:TPVG) outlook, the latest data from InvestingPro sheds further light on the company’s financial position and market performance. With a market cap of $304.66 million and a negative P/E ratio of -7.39, TriplePoint’s recent challenges are reflected in the company’s valuation. Notably, the company’s trailing twelve-month revenue of $131.92 million through Q1 2024 indicates modest growth of 5.86%. However, quarterly revenue growth was down 11.26%, suggesting potential headwinds for near-term earnings.
InvestingPro Tips highlights that TriplePoint has a very high dividend yield of 19.88%, an important consideration for income-focused investors, given that the company has maintained dividend payments for 11 consecutive years. Despite this, the company is trading near its 52-week low and has not been profitable for the past 12 months. Additionally, its short-term liabilities exceed its current assets, which could raise concerns about its liquidity position. For investors considering this stock, it is important to evaluate these factors along with the dividend yield and the stability of its historical dividends.
For those looking for a more comprehensive analysis, InvestingPro offers additional tips on TriplePoint that may provide greater insight into the company’s financial health and future prospects.
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