Morgan Stanley Direct Lending Fund (NYSE:MSDL) Given New $15.50 Price Target at UBS Group

Key Points

• UBS Group lowered Morgan Stanley Direct Lending Fund’s price target to $15.50 from $16.25 while maintaining a neutral rating, implying approximately 1.3% upside. JPMorgan also rated the stock neutral and raised its target to $14.50.
• Analyst sentiment remains cautious, with one Buy rating and six Holds; the consensus rating is Hold with an average price target of $15.50.
• The fund reported quarterly EPS of $0.45, matching estimates, but revenue of $59.28 million fell short of the $89.99 million consensus forecast. Shares opened at $15.30, within their $13.66–$18.17 52-week range.

Morgan Stanley Direct Lending Fund (NYSE:MSDL - Get Free Report) had its target price lowered by research analysts at UBS Group from $16.25 to $15.50 in a note issued to investors on Tuesday, Benzinga reports. The brokerage currently has a "neutral" rating on the stock. UBS Group's price target points to a potential upside of 1.30% from the company's current price.

Separately, JPMorgan Chase & Co. raised their price target on shares of Morgan Stanley Direct Lending Fund from $14.00 to $14.50 and gave the stock a "neutral" rating in a research note on Thursday, July 2nd. One equities research analyst has rated the stock with a Buy rating and six have given a Hold rating to the stock. According to data from MarketBeat, Morgan Stanley Direct Lending Fund presently has an average rating of "Hold" and an average price target of $15.50.

Morgan Stanley Direct Lending Fund Price Performance

Shares of NYSE:MSDL opened at $15.30 on Tuesday. The company has a market capitalization of $1.29 billion, a P/E ratio of 22.22 and a beta of 0.53. The company's 50-day moving average is $15.30 and its 200 day moving average is $15.13. The company has a debt-to-equity ratio of 1.20, a quick ratio of 1.71 and a current ratio of 1.71. Morgan Stanley Direct Lending Fund has a fifty-two week low of $13.66 and a fifty-two week high of $18.17.

Morgan Stanley Direct Lending Fund (NYSE:MSDL - Get Free Report) last posted its quarterly earnings data on Thursday, August 6th. The company reported $0.45 earnings per share (EPS) for the quarter, hitting analysts' consensus estimates of $0.45. The business had revenue of $59.28 million during the quarter, compared to the consensus estimate of $89.99 million. Morgan Stanley Direct Lending Fund had a net margin of 15.97% and a return on equity of 9.61%. On average, equities research analysts forecast that Morgan Stanley Direct Lending Fund will post 1.82 earnings per share for the current year.

Hedge Funds Weigh In On Morgan Stanley Direct Lending Fund

Several large investors have recently modified their holdings of the business. Caz Investments LP bought a new stake in shares of Morgan Stanley Direct Lending Fund in the second quarter valued at approximately $6,040,000. Ameritas Advisory Services LLC bought a new position in Morgan Stanley Direct Lending Fund in the 2nd quarter worth approximately $51,000. LM Advisors LLC purchased a new position in Morgan Stanley Direct Lending Fund in the 2nd quarter valued at approximately $1,310,000. Hennion & Walsh Asset Management Inc. grew its stake in Morgan Stanley Direct Lending Fund by 9.9% in the 2nd quarter. Hennion & Walsh Asset Management Inc. now owns 315,801 shares of the company's stock valued at $4,775,000 after buying an additional 28,418 shares in the last quarter. Finally, Sunbelt Securities Inc. bought a new stake in shares of Morgan Stanley Direct Lending Fund during the 1st quarter valued at $42,000.

Morgan Stanley Direct Lending Fund Company Profile

Morgan Stanley Direct Lending Fund NYSE: MSDL is a closed-end management investment company that seeks to provide investors with attractive current income and the potential for capital appreciation. The fund primarily invests in senior secured loans and other debt instruments issued by middle-market companies. By focusing on floating-rate structures, it aims to offer a measure of protection against rising interest rates while generating regular cash distributions.

The fund's investment strategy centers on building a diversified portfolio of direct lending opportunities across a broad range of industries, including healthcare, business services, and industrials.

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