Compass Point Starts American Capital (ACAS) at Buy
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Price: $17.99 --0%
Rating Summary:
8 Buy, 2 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 5 | Down: 4 | New: 20
Rating Summary:
8 Buy, 2 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 5 | Down: 4 | New: 20
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Compass Point initiates coverage on American Capital (NASDAQ: ACAS) with a Buy. PT $17.50.
The firm comments, "ACAS is one of the early pioneers of the BDC model having IPO'd in Aug. '97. To investors, the company is most known for its aggressive growth heading into the teeth of the prior downturn and subsequent restructuring in 2010. As a result, the company's portfolio remains saddled with a significant amount of legacy investments and sentiment in the stock is plagued by this past performance. While valid, we believe these concerns are reflected in the 20% discount to NAV. Further, there are several actions that we believe could boost NAV and reduce (though not close) the current discount. Overall, we believe ACAS provides investors a higher beta exposure to an economic recovery at a discount, with the potential for additional appreciation from a restructuring. We initiate with FY13/14 NOI estimates of $1.05/$1.14, respectively."
For an analyst ratings summary and ratings history on American Capital click here. For more ratings news on American Capital click here.
Shares of American Capital closed at $14.35 yesterday.
The firm comments, "ACAS is one of the early pioneers of the BDC model having IPO'd in Aug. '97. To investors, the company is most known for its aggressive growth heading into the teeth of the prior downturn and subsequent restructuring in 2010. As a result, the company's portfolio remains saddled with a significant amount of legacy investments and sentiment in the stock is plagued by this past performance. While valid, we believe these concerns are reflected in the 20% discount to NAV. Further, there are several actions that we believe could boost NAV and reduce (though not close) the current discount. Overall, we believe ACAS provides investors a higher beta exposure to an economic recovery at a discount, with the potential for additional appreciation from a restructuring. We initiate with FY13/14 NOI estimates of $1.05/$1.14, respectively."
For an analyst ratings summary and ratings history on American Capital click here. For more ratings news on American Capital click here.
Shares of American Capital closed at $14.35 yesterday.
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