
MSDL Stock Forecast & Price Target
MSDL Analyst Ratings
Bulls say
Morgan Stanley Direct Lending Fund (MSDL) is experiencing higher-than-expected net portfolio additions, indicating robust origination activity within a challenging market environment. The fund's leverage has increased to 1.08x debt/equity, approaching its targeted range of 1.0x-1.25x, which suggests an optimized capital structure and a commitment to strategic growth. Furthermore, despite elevated interest rates impacting portfolio companies, management reported better-than-anticipated portfolio performance and highlighted an increased confidence in dividend forecasts, reinforcing a positive outlook for the fund.
Bears say
Morgan Stanley Direct Lending Fund (MSDL) reported a decline in its weighted average yield on debt and income-producing investments, falling to 10.5% from 11.0% in the prior quarter, indicating a deterioration in potential income generation. The fund's net investment income (NII) per share of $0.57 was below both the internal estimate of $0.61 and the consensus estimate, primarily driven by lower-than-expected interest income, resulting in total investment income of $103 million, which also missed expectations. Furthermore, the re-negotiation of credit facilities and portfolio re-pricings highlight challenges faced by MSDL, suggesting that ongoing shifts in the credit market could adversely affect future revenue and profitability.
This aggregate rating is based on analysts' research of Morgan Stanley Direct Lending Fund and is not a guaranteed prediction by Public.com or investment advice.
MSDL Analyst Forecast & Price Prediction
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