Morgan Stanley Direct Lending Fund (NYSE:MSDL) Given New $14.00 Price Target at Royal Bank Of Canada

Key Points

• Royal Bank of Canada cut its price target on Morgan Stanley Direct Lending Fund from $16 to $14 and maintained a “sector perform” rating; the new target implies just 1.08% upside from the current price.
• Analyst views remain mixed: UBS upgraded the stock to “buy,” while other analysts maintained or set neutral ratings. MarketBeat reports a consensus “hold” rating and an average price target of $14.50.
• MSDL shares fell 1.1% to $13.85 in Wednesday trading, near their 50-day moving average of $14.01 and below their 200-day average of $14.90.

Morgan Stanley Direct Lending Fund (NYSE:MSDL - Get Free Report) had its price target dropped by equities researchers at Royal Bank Of Canada from $16.00 to $14.00 in a research report issued to clients and investors on Wednesday, Benzinga reports. The firm presently has a "sector perform" rating on the stock. Royal Bank Of Canada's price objective indicates a potential upside of 1.08% from the stock's current price.

Other research analysts have also recently issued reports about the stock. UBS Group raised shares of Morgan Stanley Direct Lending Fund from a "neutral" rating to a "buy" rating and lowered their price target for the company from $15.50 to $14.50 in a research report on Tuesday. Raymond James Financial set a $15.00 target price on shares of Morgan Stanley Direct Lending Fund in a research note on Thursday, October 22nd. Finally, Keefe, Bruyette & Woods lowered their target price on shares of Morgan Stanley Direct Lending Fund from $16.00 to $15.00 and set a "market perform" rating for the company in a report on Monday. Two analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the company's stock. According to data from MarketBeat, Morgan Stanley Direct Lending Fund presently has an average rating of "Hold" and a consensus price target of $14.50.

Morgan Stanley Direct Lending Fund Stock Down 1.1%

Shares of MSDL stock traded down $0.15 during mid-day trading on Wednesday, reaching $13.85. 99,237 shares of the company's stock traded hands, compared to its average volume of 643,826. The company's 50-day moving average price is $14.01 and its 200-day moving average price is $14.90. The company has a market cap of $1.15 billion, a P/E ratio of 276.98 and a beta of 0.56. The company has a quick ratio of 1.71, a current ratio of 1.23 and a debt-to-equity ratio of 1.21. Morgan Stanley Direct Lending Fund has a 12 month low of $12.71 and a 12 month high of $17.91.

Hedge Funds Weigh In On Morgan Stanley Direct Lending Fund

Several institutional investors and hedge funds have recently modified their holdings of MSDL. Lunate Capital Ltd raised its position in shares of Morgan Stanley Direct Lending Fund by 19.5% in the 3rd quarter. Lunate Capital Ltd now owns 1,319,110 shares of the company's stock worth $17,979,000 after purchasing an additional 215,296 shares during the last quarter. Russell Investments Group Ltd. grew its position in Morgan Stanley Direct Lending Fund by 2.9% during the 3rd quarter. Russell Investments Group Ltd. now owns 1,092,790 shares of the company's stock valued at $14,895,000 after purchasing an additional 30,988 shares during the last quarter. Rivernorth Capital Management LLC grew its position in Morgan Stanley Direct Lending Fund by 37.6% during the 1st quarter. Rivernorth Capital Management LLC now owns 1,052,351 shares of the company's stock valued at $14,691,000 after purchasing an additional 287,808 shares during the last quarter. Sumitomo Mitsui Trust Group Inc. increased its stake in Morgan Stanley Direct Lending Fund by 1.6% during the 3rd quarter. Sumitomo Mitsui Trust Group Inc. now owns 626,116 shares of the company's stock valued at $8,534,000 after purchasing an additional 10,000 shares in the last quarter. Finally, Caz Investments LP bought a new stake in Morgan Stanley Direct Lending Fund during the 2nd quarter valued at about $6,040,000.

About Morgan Stanley Direct Lending Fund

Morgan Stanley Direct Lending Fund is a business development company that provides financing to U.S. middle-market businesses. Its investment strategy focuses primarily on privately originated senior secured loans, including first-lien and unitranche debt, and may include other debt or equity investments. The fund is externally managed by Morgan Stanley Investment Management, drawing on Morgan Stanley's private credit and direct lending capabilities. It began operations in 2021 and became publicly traded on the New York Stock Exchange in 2024.

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