Oaktree Specialty Lending Is On Sale And I'm Buying (Rating Upgrade)

Summary

• Oaktree Specialty Lending's stock dropped 7.5% after reporting lower-than-expected net investment income due to an increase in non-accruals.
• Despite the miss, Oaktree's investment income, interest income, and dividend income all increased on a year-over-year basis.
• The per-share amounts declined due to an increase in share count related to the OCSI deal.
• OCSL's future looks promising with high interest rates, growing investment income, and a rising percentage of first-lien investments.
• In this article, I explain why I'm upgrading my OCSL rating to a strong buy.

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Oaktree Specialty Lending (NASDAQ:OCSL) reported earnings Thursday, crashing 7.5% after net investment income came in

Analyst’s Disclosure:I/we have a beneficial long position in the shares of OCSL either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.