Buy Rating Affirmed for Blackstone Secured Lending Fund Amid Strong Performance and Resilience

In a report released yesterday, Derek Hewett from Bank of America Securities maintained a Buy rating on Blackstone Secured Lending Fund (BXSL – Research Report), with a price target of $33.50.

Derek Hewett has given his Buy rating due to a combination of factors that highlight the strength and potential of the Blackstone Secured Lending Fund. The fund has reported a strong quarter with healthy credit and solid liquidity, despite challenging macroeconomic conditions. The stabilization of yield pressure following base rate cuts and the fund’s ability to manage tighter credit spreads are positive indicators of its resilience.
Furthermore, the fund’s core profitability remains robust with a core return on equity of 12.3%, and it has maintained a stable net asset value per share. The portfolio’s defensive nature, with a high percentage of lower-risk first lien senior secured investments, combined with strong credit and an investor-friendly fee structure, positions it well for generating strong risk-adjusted returns. Additionally, the fund’s leverage remains within target levels, and its financial flexibility is enhanced by a significant portion of unsecured debt, contributing to its overall stability and growth prospects.

In another report released on April 24, J.P. Morgan also maintained a Buy rating on the stock with a $30.00 price target.