Blackstone Secured Lending Fund (NYSE: BXSL) focuses on generating income through a senior secured, first-lien loan portfolio, backed by Blackstone Credit’s sourcing and underwriting platform.
The company’s stock performance has lagged behind its peers, underperforming by about 10% year-to-date, despite its NAV and ROE metrics exceeding those of the Buy-rated business development companies (BDC) group.
B Riley Securities analyst Sean-Paul Adams initiated coverage on Blackstone Secured Lending Fund with a Buy rating and a 12-month price forecast of $32 per share.
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The analyst stated that the company is trading at ~1.0x price-to-NAV, while offering a dividend yield of around 11%. This valuation gap does not align with the fund’s materially stronger credit metrics compared to the broader BDC group.
Managed externally by Blackstone Credit, BXSL benefits from the platform’s sourcing depth and disciplined underwriting. Its best-in-class fee structure, comprising a 1.0% base fee and a 17.5% incentive fee with a total-return hurdle, supports ROE generation above 11%.
The fund’s credit profile stands out, with ~98% of its portfolio in first lien loans, nonaccruals accounting for only ~0.3% of cost, among the lowest of BDC peers.
The brokerage stated that NAV stability and prudent leverage also support the Buy thesis. BXSL’s second quarter 2025 NAV/share rose ~1% year-over-year to $27.33, marking the eighth consecutive quarter of flat-to-rising NAV, which analysts view as evidence of conservative structures and proactive credit management.
Leverage at ~1.13x debt/equity leaves a sufficient cushion under the regulatory coverage limit. The 77 cents quarterly dividend was fully covered in the second quarter 2025 by net investment income of 77 cents per share, and analysts expect continued coverage supported by the portfolio’s floating-rate mix and manageable funding costs, the analyst said.
Valuation remains a key part at ~1.0x NAV, BXSL trades below where its credit quality and fee structure suggest it should. The $32 price forecast equates to ~1.15 times the fiscal year 2026 estimate NAV of $27.74, leading to a total return outlook that exceeds the BDC sector average.
B. Riley’s estimates reflect a normalisation of EPS following outsized 2024 results. GAAP EPS is expected to decline from $3.44 in fiscal year 2024 to $2.92 in fiscal year 2025, with a steady profile into fiscal year 2026 at $2.91, implying quarterly earnings in the 72 cents-74 cents range.
Price Action: BXSL shares were trading higher by 0.72% to $27.27 at last check Thursday.
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