Sixth Street Specialty Lending stock initiated at Hold by Clear Street

Published 04/09/2025, 22:06
Sixth Street Specialty Lending stock initiated at Hold by Clear Street

Investing.com - Clear Street initiated coverage on Sixth Street Specialty Lending (NYSE:TSLX) with a Hold rating and a $22.00 price target on Thursday. The stock currently trades at $24.77, near its 52-week high of $25.16.

The research firm noted that shares currently trade at the high end of their historical valuation range, suggesting limited near-term upside potential for the business development company (BDC). The stock trades at a P/E ratio of 12.33 and offers an attractive 8.42% dividend yield. According to InvestingPro, TSLX has maintained dividend payments for 12 consecutive years, with several more key insights available to subscribers.

Despite the neutral rating, Clear Street described TSLX as "a compelling investment opportunity within the BDC space" citing several positive attributes.

The firm highlighted Sixth Street’s consistency, disciplined underwriting approach, and structurally resilient business model as key strengths.

Clear Street also pointed to the company’s "superior long-term performance" as a factor that makes it stand out among business development companies, despite the current valuation constraints.

In other recent news, Sixth Street Specialty Lending reported its second-quarter 2025 earnings, exceeding Wall Street’s expectations. The company achieved an earnings per share of $0.56, surpassing the forecasted $0.53, resulting in a 5.66% earnings surprise. Revenue also outperformed predictions, reaching $115 million compared to the anticipated $110.94 million. In addition to these financial results, JMP Securities raised its price target for Sixth Street Specialty Lending to $25.00 from $24.00, maintaining a Market Outperform rating. JMP cited "impressive results," noting a 15% GAAP net income return on equity. These developments reflect positively on the company’s recent performance.

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