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FINWIRES

BofA Downgrades Runway Growth Finance to Underperform From Neutral, Cuts Price Target to $5.50 From $9

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FINWIRES Analysis

BofA's move runs against a consensus that still rates RWAY overweight with a target near $8.34, leaving this Underperform call an outlier worth flagging. The roughly 40% target cut to $5.50 signals concern over credit quality or NAV in venture-debt BDC lending, a segment sensitive to rising defaults among growth-stage borrowers. Watch whether peers follow, as a lone bearish revision often precedes wider sentiment shifts.

What are the key takeaways?

  • BofA target $5.50 sits well below $8.34 consensus
  • Outlier bearish call on venture-debt BDC
  • Watch for peer downgrades confirming the shift

Runway Growth Finance (RWAY) has an average rating of overweight and mean price target of $8.34, according to analysts polled by FactSet.

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