In a report released today, Brian McKenna from JMP Securities reiterated a Buy rating on Sixth Street Specialty Lending (TSLX – Research Report), with a price target of $24.00.
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Brian McKenna has given his Buy rating due to a combination of factors that highlight Sixth Street Specialty Lending’s strong financial performance and strategic management approach. The company reported impressive fourth-quarter earnings with adjusted net investment income (NII) per share of $0.61, surpassing market expectations. This performance translated into a robust 14.2% adjusted NII return on equity (ROE), showcasing the company’s ability to generate solid returns despite challenging market conditions.
Additionally, TSLX’s consistent strength in key financial metrics, such as activity-based fees and net asset value (NAV) growth, supports McKenna’s favorable outlook. The company achieved the highest activity-based fees in seven quarters and a sequential increase in NAV, while maintaining strong dividend coverage ratios. Furthermore, the management’s conservative guidance for 2025, alongside its track record of NAV growth and healthy credit quality, reinforces the potential for continued financial success.
According to TipRanks, McKenna is a 5-star analyst with an average return of 31.2% and an 83.04% success rate. McKenna covers the Financial sector, focusing on stocks such as Blue Owl Capital, Hercules Capital, and Blue Owl Capital.
In another report released yesterday, J.P. Morgan also maintained a Buy rating on the stock with a $23.00 price target.