Wells Fargo Maintains Underweight on BlackRock TCP Capital (TCPC), Cuts Price Target to $5.50

Core Viewpoint - Wells Fargo has maintained an Underweight rating on BlackRock TCP Capital Corp. (TCPC) and reduced the price target to $5.50 from $6 following the company's quarterly results, highlighting risks associated with restructured credits [1] Financial Performance - For Q3 2025, TCPC reported revenue of $50.52 million, a decrease of nearly 29% year over year [4] - Total investment acquisitions and dispositions during the quarter were approximately $63.1 million and $139.5 million, respectively [4] Investment Strategy and Portfolio Management - CEO Philip Tseng indicated that the company does not expect to recover value from its investment in Renovo, anticipating a full write-down in Q4 2025, which could reduce the Q4 net asset value by about $0.15 per share on a pro forma basis [2] - TCPC experienced a 20% increase in deals reviewed compared to the previous quarter and a 40% increase in deals moving to the screening stage, with management emphasizing ongoing portfolio diversification [3] - The average position size in the portfolio decreased to $7.8 million from $11.7 million at the end of 2024 [3]