Sixth Street price target raised to $24.50 from $23 at BofA

BofA analyst Derek Hewett raised the firm’s price target on Sixth Street (TSLX) to $24.50 from $23 and keeps a Buy rating on the shares. The Q1 results for the business development companies were “somewhat disappointing,” with profitability weaker than expected as lower rates and spreads, tariff-related macro uncertainty, and normalizing credit weighted on reports, the analyst tells investors in a research note. However, there was only as small uptick in non-accruals to 2.9%, which remain well below the industry longer-term average, adds BofA. It remains positive on the sector.