On Tuesday, Nuveen Churchill Direct Lending Corp (NYSE:NCDL) received an upgrade from Market Perform to Market Outperform by JMP Securities, accompanied by a new price target of $18.50. The revision follows the company's first quarterly earnings report as a public entity, which the analyst noted surpassed expectations.
The earnings released on Monday revealed that Nuveen Churchill Direct Lending Corp's net investment income (NII) reached $0.66, exceeding the analyst's estimate of $0.65. Additionally, the firm's net asset value (NAV) concluded the year at $18.13, slightly above the forecast of $18.05 and marked a 1% sequential increase.
This growth was attributed to robust dividend coverage and approximately $3 million in net realized and unrealized gains.
The analyst highlighted the company's healthy credit quality, as evidenced by the absence of non-accrual status companies at the end of the year. Furthermore, the investment portfolio of Nuveen Churchill Direct Lending Corp expanded by 11% sequentially, totaling $1.6 billion.
The upgrade to Market Outperform reflects the analyst's positive view of the company following a recent, deemed unwarranted, sell-off of its shares. The improved price target and rating suggest confidence in Nuveen Churchill Direct Lending's performance and future prospects.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.