
MSDL Stock Forecast & Price Target
MSDL Analyst Ratings
Bulls say
Morgan Stanley Direct Lending Fund (MSDL) demonstrates a solid financial position with its leverage ratio increasing to 1.15x debt/equity, remaining well within its targeted range of 1.0x-1.25x. The fund offers an attractive fee structure, featuring a base management fee of 1.0% one year post-IPO, which is lower than the average of 1.2% within the broader Business Development Company (BDC) sector. Furthermore, MSDL's ability to leverage Morgan Stanley's extensive relationships enhances its origination and sourcing capabilities, contributing to a favorable outlook based on its current valuations.
Bears say
The financial outlook for Morgan Stanley Direct Lending Fund indicates several critical risks that contribute to a negative perspective. Primarily, the company's heavy reliance on its investment advisor raises concerns about the sustainability of access to necessary investment expertise, especially during economic downturns that could adversely affect portfolio performance. Additionally, the fund's strategy, which incorporates leverage, exposes it to magnified risks related to potential gains and losses, alongside increased vulnerability to changes in interest rates that may adversely impact cost of capital and net investment income.
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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