Oppenheimer Downgrades Crescent BDC (CCAP) to Perform

Oppenheimer analyst Michael Penn downgraded Crescent BDC (NASDAQ: CCAP) from Outperform to Perform.

The analyst comments: “In 1Q26, CCAP lost $0.42/share for -9.0% ROE. The BDC generated net realized/ unrealized losses of $31M, or $0.84/share, primarily from marks on ACI Group ($7.0M, or $0.19/sh), Logan JV ($4.5M, or $0.12/share), Avalign ($2.1M, or $0.06/share), and SlickDeals ($2.3M, or $0.06/sh). We estimate EPS of $0.70 and $1.52 in 2026 and 2027, for ROEs of 3.8% and 8.3%, respectively. This compares to the $1.36/share dividend. Lowering price target $3 to $16, as we raise the equity discount rate by 50 bps to 9.5%, lower the expected ROE by 70 bps to 8.3%, and our NAV declines by $0.83/sh. We estimate CCAP earns an 8.3% ROE, and given a cost of equity of 9.5%, we estimate a fair value of $16 (0.9x book value). We are lowering our rating to Perform from Outperform.”

For an analyst ratings summary and ratings history on Crescent BDC click here. For more ratings news on Crescent BDC click here.

Shares of Crescent BDC closed at $11.99 yesterday.

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