Hercules downgraded to Underperform from Market Perform at Keefe Bruyette

Keefe Bruyette analyst Ryan Lynch downgraded Hercules Capital to Underperform from Market Perform with a price target of $10.50, down from $14.50. The analyst, who was already negative on the business development company venture lenders heading into 2023 on "significant headwinds" from expected higher interest rates, says the failure of SVB Financial (SIVB) "accelerates and exacerbates these negative trends." The failure also introduces new risks including certain businesses and venture capital funds losing access to their primary banking partner, the analyst tells investors in a research note.