TPG Specialty Lending (TSLX) – Investment Analysts’ Weekly Ratings Updates

A number of firms have modified their ratings and price targets on shares of TPG Specialty Lending (NYSE: TSLX) recently:

  • 2/26/2018 – TPG Specialty Lending was upgraded by analysts at National Securities from a “neutral” rating to a “buy” rating. They now have a $21.00 price target on the stock, up previously from $20.00. They wrote, “• TPG posted NII/share of $0.45, 3 cents shy of our estimate due to lighter fee income than we had anticipated. The decline in fee income was largely attributable to a reduction in syndication fees and prepayment-related income and the company expects repayment activity to slow in the coming quarters which should serve to augment the portfolio.

    • The earnings were well above the $0.39/share regular dividend and the company again declared a special dividend of $0.03/share to be payable in 1Q18. We continue to expect special dividends to be declared as the company’s run rate of earnings remains significantly above the conservatively set base dividend level.

    • The company had record gross originations of $1.07 billion during 4Q17, largely consisting of a $400 million first lien loan to Northern Oil & Gas (NYSE: NOG – NEUTRAL – $2.05) and a $550 million ABL (asset-based lending) facility to iHeart Communications (OTC: IHRT – NR – $0.52). Out of these gross originations, $770 million were allocated to affiliated funds via co-investment or syndicated out.

    • The iHeart allocation to TSLX specifically is $111.6 million at cost and underscores the diversity of TPG’s platform and the company’s ability to provide borrowers with complex capital structures and provide certainty of closing, both leading to strong pricing power for TSLX in a very challenging loan market.

    • We are revising our 2018 NII/share estimate to $1.93 from $1.95 and are rolling out our fiscal 2019 NII/share estimate of $1.92. We expect iHeart to prepay (3-year term) in 3Q18 and boost earnings for the full year of 2018. We are upgrading shares to BUY from NEUTRAL and increasing our price target to $21 from $20. TSLX continues to remain one of the best run BDCs in the industry, in our opinion, and the recent selloff in shares presents a buying opportunity as we see it. “
  • 2/23/2018 – TPG Specialty Lending had its price target lowered by analysts at JMP Securities from $22.00 to $21.50. They now have an “outperform” rating on the stock.
  • 2/23/2018 – TPG Specialty Lending had its “buy” rating reaffirmed by analysts at SunTrust Banks, Inc.. They now have a $21.00 price target on the stock.
  • 2/22/2018 – TPG Specialty Lending was upgraded by analysts at Ladenburg Thalmann Financial Services from a “neutral” rating to a “buy” rating.

Shares of TPG Specialty Lending Inc (TSLX) traded up $0.04 during trading hours on Monday, reaching $18.50. The company had a trading volume of 408,129 shares, compared to its average volume of 279,263. TPG Specialty Lending Inc has a 1 year low of $17.76 and a 1 year high of $21.74. The company has a market capitalization of $1,114.99, a PE ratio of 10.00, a price-to-earnings-growth ratio of 3.38 and a beta of 0.63. The company has a debt-to-equity ratio of 0.73, a quick ratio of 0.71 and a current ratio of 0.71.

TPG Specialty Lending (NYSE:TSLX) last announced its earnings results on Wednesday, February 21st. The financial services provider reported $0.45 EPS for the quarter, hitting the Thomson Reuters’ consensus estimate of $0.45. TPG Specialty Lending had a return on equity of 12.45% and a net margin of 53.80%. The firm had revenue of $48.80 million for the quarter, compared to analysts’ expectations of $49.58 million. During the same quarter in the previous year, the company earned $0.47 earnings per share. The firm’s quarterly revenue was down 1.8% compared to the same quarter last year. equities analysts predict that TPG Specialty Lending Inc will post 1.82 earnings per share for the current fiscal year.

The company also recently announced a special dividend, which will be paid on Friday, March 30th. Investors of record on Wednesday, February 28th will be issued a dividend of $0.03 per share. The ex-dividend date is Tuesday, February 27th. This represents a yield of 8.52%. TPG Specialty Lending’s payout ratio is 84.32%.

In other TPG Specialty Lending news, Director Richard A. Higginbotham purchased 10,000 shares of the firm’s stock in a transaction on Wednesday, February 28th. The shares were purchased at an average price of $18.32 per share, for a total transaction of $183,200.00. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, Director John Ross purchased 5,000 shares of the firm’s stock in a transaction on Tuesday, March 6th. The stock was acquired at an average price of $18.40 per share, for a total transaction of $92,000.00. Following the transaction, the director now owns 22,701 shares of the company’s stock, valued at approximately $417,698.40. The disclosure for this purchase can be found here. In the last three months, insiders have purchased 16,295 shares of company stock worth $298,852. 4.80% of the stock is owned by corporate insiders.

TPG Specialty Lending, Inc is an externally managed, closed-end, non-diversified management investment company. The Company is a specialty finance company focused on lending to middle-market companies. It seeks to generate current income primarily in the United States-domiciled middle-market companies through direct originations of senior secured loans and originations of mezzanine and unsecured loans and investments in corporate bonds and equity securities.

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