As previously reported, Wells Fargo analyst Finian O’Shea downgraded Morgan Stanley Direct Lending (MSDL) to Equal Weight from Overweight with a price target of $16, down from $17. The firm notes that valuation has marginally improved, but credit showed some deterioration in Q3 earnings. Importantly, Morgan Stanley Direct Lending’s realized-only lookback structure may not protect shareholders with NOI upside from credit downside, Wells adds.
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