JMP Securities Raises Price Target for TSLX to $25.00, Maintains 'Market Outperform' Rating

JMP Securities analyst Brian McKenna has raised the price target for Sixth Street Specialty (TSLX) to $25.00, a 4.17% increase, while maintaining a "Market Outperform" rating. This follows previous updates from Wells Fargo and Raymond James analysts. The average target price from 9 analysts is $24.44, with a high estimate of $25.00 and a low estimate of $24.00. The average brokerage recommendation is "Outperform" with an estimated GF Value of $35.38, suggesting a 47.63% upside from the current price.

JMP Securities analyst Brian McKenna has raised the price target for Sixth Street Specialty Lending (TSLX) to $25.00, a 4.17% increase, while maintaining a "Market Outperform" rating. This move follows recent updates from Wells Fargo and Raymond James analysts. The average target price from nine analysts is $24.44, with a high estimate of $25.00 and a low estimate of $24.00. The average brokerage recommendation is "Outperform" with an estimated GF Value of $35.38, suggesting a 47.63% upside from the current price.

The price target increase reflects Sixth Street Specialty Lending's strong performance, as highlighted by a 15% GAAP net income return on equity [1]. The company's earnings report for Q2 2025 exceeded Wall Street's forecasts, with an earnings per share (EPS) of $0.56, surpassing the expected $0.53 and representing a 5.66% positive surprise. Revenue for the quarter reached $115 million, exceeding the anticipated $110.94 million [3].

Sixth Street Specialty Lending has demonstrated a consistent ability to deliver differentiated performance and industry-leading ROEs in various market environments, making it a stock to own through the cycle [1]. Its disciplined capital allocation, high-yield portfolio, and operational resilience position it to outperform in both stable and volatile markets [2].

The company's dividend policy is a cornerstone of its appeal, with a dividend yield of 8.79% and 12 consecutive years of uninterrupted payments. The board's decision to declare a supplemental dividend of $0.05 per share in Q2 further reinforces confidence in its liquidity and earnings consistency [2].

Investors should monitor sector-wide challenges, such as rising defaults in lower-rated credits and potential rate cuts later in the year. However, Sixth Street Specialty Lending's strategic advantages and operational strengths make it a compelling long-term holding for income-focused investors seeking a balance between income generation and capital preservation.

References:
[1] https://www.tipranks.com/news/the-fly/sixth-street-price-target-raised-to-25-from-24-at-citizens-jmp-thefly
[2] https://www.ainvest.com/news/sixth-street-specialty-lending-beacon-earnings-strength-dividend-resilience-stabilizing-bdc-sector-2508/
[3] https://www.investing.com/news/analyst-ratings/sixth-street-specialty-lending-price-target-raised-to-25-by-jmp-93CH-4172199