Carlyle Secured Lending price target lowered to $16 from $17 at Wells Fargo

Wells Fargo analyst Finian O’Shea lowered the firm’s price target on Carlyle Secured Lending to $16 from $17 and keeps an Equal Weight rating on the shares. The firm notes Carlyle reported NOI of 51c, in line with our estimate, while watch-list related credit loss consumed 16c of NAV this quarter. It announced a deal to acquire an affiliated BDC 2.0, CSL 3, at NAV or higher depending on its trading levels at close. It is unclear if the incentive will exclude amounts related to purchase accounting. Otherwise, Wells sees this as a win for Carlyle, which expands its capital base and with an improved vintage tilt.