BofA Lowers Runway Growth Finance (RWAY) PT to $9.75, Keeps Neutral Rating

On June 1, BofA updated its outlook on Runway Growth Finance Corp. (NASDAQ:RWAY) and lowered the price target from $10.50 to $9.75 while keeping a Neutral rating on the shares. This revision follows the Runway’s Q1 2025 results, which showed weaker-than-expected profitability.

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Runway Growth Finance Corp. (NASDAQ:RWAY) reported a net investment income of $15.6 million in Q1. This compares to a net investment income of $18.7 million in Q1 2024. The company’s investment portfolio is primarily composed of first-lien senior secured loans and had a fair value of $1 billion as of March 31. The company experienced only a small uptick in non-accruals and reached 2.9% across its portfolio. This figure remains significantly below the industry’s longer-term average.

During Q1, Runway Growth Finance Corp. (NASDAQ:RWAY) funded $50.7 million in 3 investments within its existing portfolio companies. The company aims to further diversify its portfolio through originations of $30 million to $150 million loans, with an ideal BDC (Business Development Company) allocation of $20 million to $45 million, while maintaining a credit-first underwriting approach.

Runway Growth Finance Corp. (NASDAQ:RWAY) is a business development company that specializes in investments in senior-secured loans to late-stage & growth companies.

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Disclosure: None. This article is originally published at Insider Monkey.