Runway Growth upgraded to Buy from Neutral at Compass Point (yesterday)

Compass Point yesterday morning upgraded Runway Growth Finance to Buy from Neutral with a price target of $11.25, down from $12.75. The company has had four straight quarters of declining net asset value and is also dealing with a large non-accrual, the analyst tells investors in a research note. However, the firm also believes Runway’s Q2 net interest income of 37c per share has been misunderstood by the market, causing the shares to be oversold. Compass notes Runway had one large loan prepay right at the end of Q1 and another right at the beginning of Q2. It believes the shares “have become significantly oversold for the wrong reason, and this creates an opportunity to buy the stock.”