Morgan Stanley Direct Lending downgraded to Neutral from Buy at UBS

UBS downgraded Morgan Stanley Direct Lending to Neutral from Buy with an unchanged price target of $23.50. The performance of the shares since the initial public offering has moved Morgan Stanley Direct’s valuation in line with other scaled externally managed business development companies relative to its expected 2025 return on equity, the analyst tells investors in a research note. The firm cites valuation for the downgrade.