Derek Hewett, an analyst from Bank of America Securities, maintained the Buy rating on Blackstone Secured Lending Fund (BXSL – Research Report). The associated price target is $33.00.
Derek Hewett has given his Buy rating due to a combination of factors, including Blackstone Secured Lending Fund’s strong credit performance and robust portfolio growth. The company reported a solid quarter with a record NAV/share of $27.39 and a GAAP ROE of 11.0%, indicating strong profitability despite yield pressures that slightly impacted top-line growth.
Additionally, the fund’s defensive portfolio construction, with 98% in lower-risk first lien senior secured investments, positions it well for generating strong risk-adjusted returns. The non-accrual investments remain minimal at 0.3%, significantly below the peer average, and the payment-in-kind revenue is also lower than many large peers. These factors, combined with an attractive dividend yield of 11.2% and increased financial flexibility due to unsecured debt, support the Buy rating.
BXSL’s price has also changed moderately for the past six months – from $29.700 to $32.730, which is a 10.20% increase.