Market Overview

UPDATE: J.P. Morgan Reiterates Overweight Rating, Raises PT on Ares Capital

Related ARCC
Benzinga's Top Upgrades, Downgrades For December 6, 2017
Benzinga's Top Upgrades, Downgrades For November 28, 2017
Ares Capital (ARCC) Presents At JMP Securities Financial Services Conference - Slideshow (Seeking Alpha)

In a report published Monday, J.P. Morgan & Co. reiterated its Overweight rating on Ares Capital (NASDAQ: ARCC), and slightly raised its price target from $17.50 to $18.00.

J.P. Morgan noted, “ARCC remains one of our favorite picks within the BDC universe, due to a conservative strategy and broad access to capital vs. peers. In 3Q, the company raised equity (roughly $428M) and refinanced debt at more attractive rates, positioning it for future asset growth. Our correlation analysis forecasts roughly 3.6% of NAV accretion, to $16.07 from $15.51 in 2Q. We forecast NAV expansion to $16.22 by CYE 2013. Margin pressure dampened by cheaper debt. ARCC improved its cost of debt in the quarter, through the issuance of a $175M term loan at a 69bp reduction and the issuance of convertible notes at a 100bp reduction.”

Ares Capital closed on Friday at $17.49.

Latest Ratings for ARCC

Jun 2018JMP SecuritiesMaintainsMarket OutperformMarket Outperform
Apr 2018JP MorganMaintainsOverweightOverweight
Dec 2017Compass PointInitiates Coverage OnBuy

View More Analyst Ratings for ARCC
View the Latest Analyst Ratings

Posted-In: J.P. Morgan & Co.Analyst Color Price Target Analyst Ratings


Related Articles (ARCC)

View Comments and Join the Discussion!