Bank of America Securities analyst Derek Hewett maintained a Buy rating on Sixth Street Specialty Lending on February 13 and set a price target of $23.00.
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Derek Hewett has given his Buy rating due to a combination of factors, including TSLX’s ability to deliver core earnings slightly above expectations while maintaining strong liquidity and stable credit quality. He views the company as well positioned to sustain its dividend even in a tougher rate and spread environment, supported by solid core return on equity and disciplined portfolio management.
Hewett also highlights that non-accruals and payment-in-kind levels remain better than sector averages, limiting downside risk to net asset value per share despite modest portfolio markdowns. In addition, he believes TSLX’s scale, conservative leverage, and new joint venture strategy enhance its capacity to gain market share and generate attractive risk-adjusted returns, justifying a Buy rating and price objective above the current share price.
Hewett covers the Financial sector, focusing on stocks such as Golub Capital Bdc, Sixth Street Specialty Lending, and MidCap Financial Investment Corporation. According to TipRanks, Hewett has an average return of 3.7% and a 52.79% success rate on recommended stocks.
In another report released on February 14, TipRanks – PerPlexity also reiterated a Buy rating on the stock with a $23.00 price target.