Analysts covering Hercules Capital Inc. were quick to cut their ratings and price targets after former Chief Executive Officer Manuel Henriquez was among those charged in an alleged college-admission cheating conspiracy.
Henriquez, who stepped aside as the scandal gained force, founded and had been seen as “the face” of the venture-debt company. Analysts worried that Hercules’s access to capital and origination growth may be hurt. Even so, Wells Fargo said there was likely “excessive selling in the stock,” and advised investors to “lean in as fears of catastrophe are overblown.”
