Wells Fargo analyst Finian O’Shea has maintained their bullish stance on BXSL stock, giving a Buy rating yesterday.
Finian O’Shea has given his Buy rating due to a combination of factors impacting the Blackstone Secured Lending Fund’s (BXSL) financial performance. O’Shea recognizes BXSL’s ability to maintain strong origination and credit performance even in the face of potential market headwinds such as repricings. The Fund’s larger market portfolio, despite being susceptible to competition, is noted for supporting solid credit performance and contributing to a high net operating income (NOI) profile, which is particularly impressive given the minimal presence of non-income producing investments in the portfolio. This indicates a stable and robust operational framework which underpins O’Shea’s Buy rating.
Furthermore, O’Shea sees potential for earnings growth through judicious use of leverage, as BXSL has been operating near the lower end of its target leverage range. The slow pace of new share issuance suggests a conservative approach to leveraging, which could lead to earnings upside should BXSL decide to strategically increase its leverage in an improving deal environment. Adjustments in O’Shea’s NOI estimates for the upcoming years reflect a balance between a higher SOFR curve and modest spread compression, maintaining a positive outlook on BXSL’s financial prospects. The Overweight rating is sustained by these revised estimates, which, coupled with a stable price target, suggest confidence in the Fund’s performance going forward.
In another report released yesterday, Bank of America Securities also maintained a Buy rating on the stock with a $32.00 price target.
BXSL’s price has also changed moderately for the past six months – from $27.740 to $31.730, which is a 14.38% increase.
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Blackstone Secured Lending Fund (BXSL) Company Description:
Blackstone Secured Lending Fund is a specialty finance company that invests primarily in the debt of private U.S. companies. It focus on investing in privately originated senior secured loans which are generally debt instruments that pay floating interest rates and rank ahead of subordinated debt and equity, where we believe lender protections are stronger and offer superior return opportunities as compared to broadly syndicated loans and public market debt instruments.
