J.P. Morgan Increases PT To $12.50 From $11.00 And EPS Estimate To $0.86 From $0.69 On American Capital (ACAS)

In a recent report, J.P. Morgan has increased the price target on American Capital

to $12.50 from $11.00 and EPS estimate to $0.86 from $0.69 resulting in J.P. Morgan reiterating an overweight rating on ACAS. In the report, J.P. Morgan said, "Repayment activity remains strong and although ACAS is actively looking for new investment opportunities, we believe the company's portfolio will continue to de-lever through 2011. We expect NAV growth should continue to fuel stock price appreciation. We reiterate our Overweight rating and increase our 2011 price target to $12.50." American Capital closed yesterday at $10.55.