UPDATE: J.P. Morgan Upgrades Ares Capital Corporation to Overweight, Reiterates $18.50 PT Following Recent Equity Offering

In a report published Wednesday, J.P. Morgan analyst Richard Shane upgraded the rating on Ares Capital Corporation ARCC from Neutral to Overweight, and reiterated the $18.50 price target. In the report, Shane noted, “We are updating our estimates after the Company's recent equity offering that closed on 4/8/13. We view ARCC as the best managed BDC in our coverage, with a strong origination platform and scale to outperform in an increasingly competitive space. We raise our rating to Overweight from Neutral given our expectations for outperformance (approx. 17% annualized total return by YE), and maintain our $18.50 price target.” Ares Capital Corporation closed on Tuesday at $17.54.