RBC Capital has downgraded Morgan Stanley Direct Lending Fund (MSDL) to Sector Perform from Outperform. The change, effective November 25, 2025, reflects heightened caution regarding the fund's outlook amid potential competitive pressures and market conditions.
Morgan Stanley Direct Lending Fund, headquartered in New York City, specializes in lending to middle-market companies. The firm aims to achieve attractive risk-adjusted returns primarily through directly originated senior secured term loans. As of the latest financial snapshot, the fund has a market cap of $1.4 billion and a P/E ratio of 8.46, with an EPS of 1.93.
Analysts have varied opinions on the fund, with a consensus rating of Buy as of November 1, 2025. Recent earnings performance has shown mixed results, with Q3 2025 EPS coming in at $0.50, slightly below expectations. Upcoming earnings are expected on August 5, 2026, with an estimated EPS of $0.47.
This update provides insight into the shifting analyst sentiment surrounding MSDL, emphasizing the importance of considering multiple factors when evaluating investment decisions.