TriplePoint Venture Growth stock swoons after Compass Point cuts to Sell (NYSE:TPVG)

Duncan_Andison

TriplePoint Venture Growth (NYSE:TPVG) stock sank 10% in Thursday midday trading after Compass Point analyst Casey Alexander downgraded the venture capital-focused business development company to Sell from Neutral.

Even after the BDC turned in stronger-than-expected Q2 results, Alexander expects that the failure of Silicon Valley Bank "could have a material impact on TPVG's business model going forward."

TriplePoint Venture Growth (TPVG) "has strong relationships with premium VC's (venture capitalist firms), but has struggled with chunky losses on various debt positions," he said.

The company's net asset value has dropped 24% since Q4 202 and faces the possibility of further declines before the venture capital cycle turns, he added.

Due to its performance, Alexander figures a discount to NAV is justified. A multiple of price/NAV of 0.90x would move his price target to $9.75, he said. TPVG closed at $12.47 on Wednesday.

His Sell rating contrasts with the SA Quant rating of Hold, the average Wall Street rating of Hold, and the average SA analyst rating of Buy.

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