In a report published Monday, J.P. Morgan & Co. reiterated its Overweight rating on Ares Capital 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.
Market News and Data brought to you by Benzinga APIs© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Loading...
date | ticker | name | Price Target | Upside/Downside | Recommendation | Firm |
---|
Benzinga simplifies the market for smarter investing
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
Join Now: Free!
Already a member?Sign in