Oppenheimer downgraded Crescent BDC (NASDAQ:CCAP) to Perform from Outperform and lowered its price target to $16 from $19. The stock now trades at $11.99, down 11.5% over the past week, hovering just above its 52-week low of $11.80.
The business development company reported a loss of $0.42 per share in Q1 2026, representing a negative 9.0% return on equity. Net realized and unrealized losses totaled $31 million, or $0.84 per share.
Losses stemmed from markdowns on ACI Group ($7.0M), Logan JV ($4.5M), Avalign ($2.1M), and SlickDeals ($2.3M). Oppenheimer estimates EPS of $0.70 in 2026 and $1.52 in 2027, against a dividend of $1.36 per share yielding 14.85%.
The firm raised its equity discount rate by 50 basis points to 9.5% and lowered expected ROE by 70 bps to 8.3%. Net asset value fell by $0.83 per share.
Oppenheimer expects Crescent BDC to earn 8.3% ROE and values shares at $16, or 0.9 times book value, given a 9.5% cost of equity.
In other news, Crescent BDC reported Q4 2025 results. Clear Street maintained Buy with $15.50 target, Raymond James adjusted to $14 with Outperform, and B.Riley initiated Neutral at $13.50.
