Analyst Finian O’Shea from Wells Fargo maintained a Buy rating on TCG BDC and keeping the price target at $15.00.
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Finian O’Shea has given his Buy rating due to a combination of factors that highlight both challenges and opportunities for TCG BDC. Despite a softer net operating income (NOI) and a slight decline in the NOI yield over recent quarters, the company has shown strong origination activity, which is expected to support dividend coverage and improve earnings potential. The restructuring of certain acquisitions, such as Maverick, and the strategic expansion of the Senior Loan Fund (SLF) are seen as positive moves that could enhance financial performance.
Additionally, while some assets have been marked down, there is potential for improvement in the debt structure, which could further bolster the company’s financial standing. The diversity in new origination styles and the successful refinancing of certain deals at lower spreads indicate a proactive approach to managing portfolio risks. O’Shea maintains a $15 price target, reflecting a favorable earnings yield and valuation in line with industry peers, supporting his Overweight rating on the stock.
CGBD’s price has also changed moderately for the past six months – from $18.370 to $13.600, which is a -25.97% drop .