UBS analyst Doug Harter has revised the price target for Morgan Stanley Direct Lending (MSDL, Financial), bringing it down slightly from $21 to $20.50. Despite this adjustment, the shares maintain a Neutral rating as the company approaches its first-quarter earnings announcement.
Investor attention is set to focus on the company's credit quality amidst growing economic instability. Although the sector's recent pullback has made valuations appear more favorable, persistent concerns about credit quality and the impact of lower short-term rates on earnings are expected to continue.
UBS's decision to lower the price target reflects a cautious outlook, anticipating a reduced return on equity due to slower loan growth. Additionally, the firm has adjusted target multiples in response to the uncertain economic backdrop.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 4 analysts, the average target price for Morgan Stanley Direct Lending Fund (MSDL, Financial) is $20.75 with a high estimate of $22.00 and a low estimate of $20.00. The average target implies an upside of 8.70% from the current price of $19.09. More detailed estimate data can be found on the Morgan Stanley Direct Lending Fund (MSDL) Forecast page.
Based on the consensus recommendation from 6 brokerage firms, Morgan Stanley Direct Lending Fund's (MSDL, Financial) average brokerage recommendation is currently 2.8, indicating "Hold" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
