Morgan Stanley Direct Lending initiated with an Equal Weight at Wells Fargo

Wells Fargo analyst Finian P. O’Shea initiated coverage of Morgan Stanley Direct Lending with an Equal Weight rating and $21 price target. The firm says Morgan Stanley Direct Lending presents an overall clean and up-market direct lending portfolio at a reasonable fee structure, but that may soon become a challenge to hold down as large market players battle with the banks. With overall good fee structures and vintage composition, Wells sees risk to consider with Morgan Stanley Direct Lending’s more limited track record and near-term deployment burden extending through its fee waiver period.