Wells Fargo upgrades Carlyle Secured Lending on ‘depressed valuation’

Wells Fargo analyst Finian O’Shea upgraded Carlyle Secured Lending (CGBD) to Overweight from Equal Weight with a price target of $15, up from $13. The shares trade at a “depressed valuation” relative to the business development company industry, the analyst tells investors in a research note. Wells says Carlyle Secured has median credit and a “more clear investment in the origination apparatus.” It sees potential upside for the shares through a possible fee cut to move Carlyle Secured back into greater than net asset value territory.