Sixth Street Specialty (NYSE:TSLX) underwent analysis by 6 analysts in the last quarter, revealing a spectrum of viewpoints from bullish to bearish.
The table below offers a condensed view of their recent ratings, showcasing the changing sentiments over the past 30 days and comparing them to the preceding months.
| Bullish | Somewhat Bullish | Indifferent | Somewhat Bearish | Bearish | |
|---|---|---|---|---|---|
| Total Ratings | 1 | 5 | 0 | 0 | 0 |
| Last 30D | 0 | 1 | 0 | 0 | 0 |
| 1M Ago | 0 | 0 | 0 | 0 | 0 |
| 2M Ago | 0 | 1 | 0 | 0 | 0 |
| 3M Ago | 1 | 3 | 0 | 0 | 0 |
Providing deeper insights, analysts have established 12-month price targets, indicating an average target of $23.25, along with a high estimate of $25.00 and a low estimate of $21.50. This upward trend is apparent, with the current average reflecting a 4.12% increase from the previous average price target of $22.33.
Deciphering Analyst Ratings: An In-Depth Analysis
A comprehensive examination of how financial experts perceive Sixth Street Specialty is derived from recent analyst actions. The following is a detailed summary of key analysts, their recent evaluations, and adjustments to ratings and price targets.
| Analyst | Analyst Firm | Action Taken | Rating |Current Price Target| Prior Price Target | |--------------------|-----------------------|---------------|---------------|--------------------|--------------------| |Melissa Wedel |JP Morgan |Lowers |Overweight | $21.50|$23.00 | |Kenneth Lee |RBC Capital |Raises |Outperform | $25.00|$23.00 | |Mark Hughes |Truist Securities |Raises |Buy | $24.00|$23.00 | |Richard Shane |JP Morgan |Raises |Overweight | $23.00|$22.50 | |Paul Johnson |Keefe, Bruyette & Woods|Raises |Outperform | $23.00|$21.50 | |Finian O'Shea |Wells Fargo |Raises |Overweight | $23.00|$21.00 |
Key Insights:
- Action Taken: Analysts frequently update their recommendations based on evolving market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Sixth Street Specialty. This information provides a snapshot of how analysts perceive the current state of the company.
- Rating: Gaining insights, analysts provide qualitative assessments, ranging from 'Outperform' to 'Underperform'. These ratings reflect expectations for the relative performance of Sixth Street Specialty compared to the broader market.
- Price Targets: Gaining insights, analysts provide estimates for the future value of Sixth Street Specialty's stock. This comparison reveals trends in analysts' expectations over time.
Understanding these analyst evaluations alongside key financial indicators can offer valuable insights into Sixth Street Specialty's market standing. Stay informed and make well-considered decisions with our Ratings Table.
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Delving into Sixth Street Specialty's Background
Sixth Street Specialty Lending Inc is a specialty finance company focused on providing flexible, fully committed financing solutions to middle market companies located in the United States of America. It partners with companies across a variety of industries and excel at providing creative solutions to companies with complex business models that may have limited access to capital. The company seeks to generate current income in U.S.-domiciled middle-market companies through direct originations of senior secured loans and, to a lesser extent, originations of mezzanine and unsecured loans and investments in corporate bonds and equity securities.
Financial Insights: Sixth Street Specialty
Market Capitalization Analysis: The company's market capitalization is below the industry average, suggesting that it is relatively smaller compared to peers. This could be due to various factors, including perceived growth potential or operational scale.
Revenue Challenges: Sixth Street Specialty's revenue growth over 3M faced difficulties. As of 31 December, 2024, the company experienced a decline of approximately -0.67%. This indicates a decrease in top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Financials sector.
Net Margin: The company's net margin is a standout performer, exceeding industry averages. With an impressive net margin of 78.14%, the company showcases strong profitability and effective cost control.
Return on Equity (ROE): The company's ROE is below industry benchmarks, signaling potential difficulties in efficiently using equity capital. With an ROE of 3.18%, the company may need to address challenges in generating satisfactory returns for shareholders.
Return on Assets (ROA): Sixth Street Specialty's ROA falls below industry averages, indicating challenges in efficiently utilizing assets. With an ROA of 1.43%, the company may face hurdles in generating optimal returns from its assets.
Debt Management: With a high debt-to-equity ratio of 1.18, Sixth Street Specialty faces challenges in effectively managing its debt levels, indicating potential financial strain.
How Are Analyst Ratings Determined?
Benzinga tracks 150 analyst firms and reports on their stock expectations. Analysts typically arrive at their conclusions by predicting how much money a company will make in the future, usually the upcoming five years, and how risky or predictable that company's revenue streams are.
Analysts attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish their ratings on stocks. Analysts typically rate each stock once per quarter or whenever the company has a major update.
Beyond their standard evaluations, some analysts contribute predictions for metrics like growth estimates, earnings, and revenue, furnishing investors with additional guidance. Users of analyst ratings should be mindful that this specialized advice is shaped by human perspectives and may be subject to variability.
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This article was generated by Benzinga's automated content engine and reviewed by an editor.