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Piper Sandler adjusted its outlook for TriplePoint Venture Growth (NYSE:NYSE:), lowering its price target to $8.00 from $9.50 previously, while maintaining a Neutral rating on the stock.
The review follows TriplePoint’s recent earnings beat, which included a missed earnings report due to lower interest income and higher operating expenses. It marked the fifth straight quarter that the company’s pipeline shrank as prepayments outpaced new projects.
The company also noted Thursday that TriplePoint has cut its quarterly dividend from $0.40 to $0.30. Net investment income for the second quarter of 2024 was $0.33.
Despite the current challenges, Piper Sandler acknowledged that TriplePoint has significantly improved its liquidity and leverage position. However, growth expectations remain modest compared to historical levels.
Piper Sandler lowered its 2024 and 2025 earnings per share estimates for TriplePoint to $1.42 and $1.49, respectively, from $1.66 and $1.80 previously.
The new price target represents about 85% of the company’s second-quarter 2025 net asset value estimate, down from 90% previously.
The investment firm expects TriplePoint shares to trade lower on Thursday due to lower net investment income, a smaller dividend and lower future earnings potential.
Investment professional tips
Given that Piper Sandler recently adjusted its outlook for TriplePoint Venture Growth (NYSE:TPVG), current data from InvestingPro sheds further light on the company’s financial health and market performance. With a market cap of $304.66 million and a negative P/E ratio of -7.39, TriplePoint’s near-term challenges are reflected in its valuation. Notably, the company’s revenue for the past 12 months through Q1 2024 was $131.92 million, a modest increase of 5.86%. However, quarterly revenue growth was down 11.26%, suggesting that earnings may face headwinds in the near term.
InvestingPro Tips highlights TriplePoint’s high dividend yield of 19.88%, a key consideration for income-focused investors, especially considering the company has maintained its dividend for 11 consecutive years. Despite this, the company is still trading near its 52-week low and has not been profitable in the past 12 months. Additionally, its short-term debt exceeds its current assets, which could raise concerns about its liquidity position. It’s important for investors considering this stock to weigh these factors along with the dividend yield and historical dividend consistency.
For those seeking a more comprehensive analysis, InvestingPro offers additional recommendations on TriplePoint, which provides a deeper understanding of the company’s financial health and its future prospects.
This article was generated with the support of artificial intelligence and reviewed by an editor. For more information, please see our terms and conditions.
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