As previously reported, Compass Point downgraded Runway Growth Finance to Neutral from Buy with an unchanged price target of $12.75, noting that Runway has now had three straight quarters of declining net asset value, or NAV. Given the three straight quarters of declining NAV, a large new non-accrual, and the overhang of selling shareholder Oaktree, the firm believes it will be difficult for Runway to sustain any premium to NAV. Given the risk of additional markdowns related to the Sangajob.com loan and the “obvious overhang” of potential selling from Oaktree, the firm feels that it is “appropriate to step to the sidelines,” the analyst tells investors.
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