Analysts have reduced fair value estimates for Sixth Street Specialty Lending from about US$23.75 to roughly US$19.80, a decline of around 17% that places the estimate in the high teens. BofA, Wells Fargo, JPMorgan, Keefe Bruyette, and Citizens all trimmed their price targets following recent Q1 reports, with BofA lowering its target to US$19.50 from US$23 while maintaining a positive rating. The cuts reflect a more conservative stance on valuation for business development companies generally, though commentary suggests the moves are a recalibration rather than a complete shift in view. Key assumption changes include an expected revenue decline adjusted from about 5.87% to roughly 3.60%, a net profit margin assumption lifted from around 48.58% to roughly 56.0%, and a future P/E multiple lowered from about 16.47x to roughly 12.00x.
Sixth Street Specialty Lending IncMultiple analysts cut price targets and fair value estimates, reflecting a more conservative valuation stance.