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Investing.com - Lucid (NASDAQ:LCID) Capital Markets initiated coverage on Carlyle Secured Lending Inc (NASDAQ:CGBD) with a Neutral rating and a $14.00 price target on Monday. According to InvestingPro data, CGBD currently trades at $13.92 with a market capitalization of $1.01 billion and maintains a healthy P/E ratio of 10.09.
The price target suggests Carlyle Secured Lending should trade at 84% of Lucid’s 2025 year-end net asset value (NAV) estimate of $16.59, in line with the stock’s current P/NAV ratio which sits below the peer median of 86%.
Lucid Capital Markets cited the expertise and resources of Carlyle as a positive long-term differentiator for CGBD in its analysis of the business development company.
The research firm expressed caution due to the increase in nonaccruals in the first quarter of 2025 and expectations that net investment income per share will fall short of the current quarterly dividend rate over the next few quarters.
The $14.00 price target translates to an 11.4% dividend yield based on Lucid’s expectation for 2025 regular dividends of $1.60, compared to the current 11.5% yield and the peer group median dividend yield of 11.7%.
In other recent news, Carlyle Secured Lending Inc. reported its first-quarter 2025 earnings, which fell short of analyst expectations. The company’s earnings per share (EPS) were $0.40, missing the forecasted $0.4353, while revenue reached $54.6 million, below the anticipated $56.12 million. Despite the earnings miss, Carlyle declared a dividend of $0.40 per share, yielding 11%. The company also completed a merger with CSL3, which contributed $490 million in new investments and increased total assets from $1.9 billion to $2.5 billion. Analysts from Wells Fargo (NYSE:WFC) Securities and JPMorgan raised questions about asset rotation and future dividend sustainability during the earnings call. Carlyle executives highlighted their focus on maintaining high-quality credit and leveraging strategic partnerships. The company anticipates stable net investment income for the second quarter, with a strong origination pipeline in place. Carlyle continues to monitor economic uncertainties, including tariff impacts, that could influence future performance.
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