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Investing.com - Truist Securities lowered its price target on MSC Income Fund Inc (NYSE:MSIF) to $19.00 from $20.00 on Friday, while maintaining a Buy rating on the stock. The company, currently trading at $14.35 and sporting a market cap of $717 million, offers an attractive 9.7% dividend yield according to InvestingPro data.
The price target reduction reflects a decrease in the target price-to-NAV multiple to 1.2x from 1.3x, which Truist attributed to expectations of a "modestly slower leverage ramp" for the company.
Despite the lower price target, Truist maintained its 2025 and 2026 Net Investment Income (NII) per share estimates at $1.48 and $1.55, respectively, noting that investment activity and results aligned with expectations.
Truist expressed confidence in MSC Income Fund’s ability to rotate into its Private Loan portfolio investments, which it believes should provide "a nice path of earnings growth in the face of falling base rates."
The firm’s continued Buy rating is based on MSIF’s "high quality debt portfolio," potential for NAV upside from equity investments, and its affiliation with Main Street.
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