Piper Sandler Downgrades Hercules Capital, Inc. (HTGC) to Neutral and Lowers its Price Target to $17.50

Hercules Capital, Inc. (NYSE:HTGC) is among the 11 High Growth Financial Stocks to Buy Now.

On February 13, 2026, Piper Sandler downgraded Hercules Capital, Inc. (NYSE:HTGC) to Neutral from Overweight and lowered the price target to $17.50 from $20.50 following the Q4 report. Piper Sandler noted the company’s 35% exposure to software could create “negative headlines, noise, and potential difficulty in business models with AI disruption a risk.” While Piper Sandler continues to view Hercules as one of the best underwriters in technology lending, Piper Sandler believes near term returns will be driven primarily by the dividend rather than share appreciation amid macro uncertainty and volatility.

Also on February 13, 2026, Keefe Bruyette lowered its price target on Hercules Capital, Inc. to $19 from $20 and maintained an Outperform rating.

On February 12, 2026, Hercules Capital, Inc. reported Q4 EPS of 48c, compared with the 49c consensus. CEO Scott Bluestein said, “Our record-breaking performance in 2025” included all-time highs in new debt and equity commitments, gross fundings, net debt portfolio growth, and investment income. New commitments reached $3.92 billion, and gross fundings totaled $2.28 billion, up 45.7% and 25.9% year over year, respectively. The company declared a supplemental distribution of $0.07 per share in the fourth quarter, marking its 22nd consecutive supplemental dividend, and said it remains focused on disciplined credit and underwriting, liquidity, prudent leverage, and expanding private fund capacity heading into 2026.

Hercules Capital, Inc. (NYSE:HTGC) is a business development company that provides private equity, venture debt, and growth capital to venture capital-backed companies from mid-venture to expansion stage, as well as select public and special opportunity companies.

While we acknowledge the potential of HTGC as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the