UPDATE: Wunderlich Upgrades Hercules Technology Group
In a report published Wednesday, Wunderlich Securities analyst Merrill Ross upgraded Hercules Technology Group (NYSE: HTGC) to Buy from Hold, keeping its $18.00 price target.
According to the report, as a venture debt lender, investment opportunities for HTGC tend to track the general investment trends of private equity investors.
“In 2014, we expect HTGC to continue to experience strong demand for customized financing from venture capital/private equity firms,” the report noted. “Moreover, we think that the company's track record of investing in firms that offer profitable exit opportunities will support total value creation in the form of a growing dividend a growing NAV. Perhaps because the company announced the bankruptcy filing of one of its portfolio companies, the shares sold off since mid-December, creating what we believe to be a buying opportunity, hence we are raising our rating from Hold to Buy.”
Some key points from the report included:
-New hires, continuing expansion of professional teams -Portfolio company reorganization under Chapter 11
HTGC closed Tuesday at $16.25 with shares trading up 2.91 percent.
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