UPDATE: Goldman Sachs Upgrades Focus Financial Partners (FOCS) to Buy

(updating comment)

Goldman Sachs analyst Alexander Bolstein upgraded Focus Financial Partners (NASDAQ: FOCS) from Neutral to Buy with a price target of $36.00 (from $24.00).

The analyst comments "As markets have stabilized over the last few months FOCS is now in a better position to execute on pent-up M&A pipeline likely to convert in 2021E, while we also see an acceleration of the secular trend of small advisors looking for affiliation with bigger organizations/platforms. Meanwhile, with improving run-rate earnings outlook amid the snapback in markets and lower M&A activity in 2020, we see FOCS naturally deleveraging into 2021E, building up capacity to potentially execute on deals. We see ~$1.5bn of M&A capacity (~44% of FOCS current Enterprise Value) being created between 2Q20E-4Q22E while we expect ~$1.3bn of capital deployment over the same time frame, purchasing FOCS ~$190mn of EBITDA (assuming ~6X), about 60% of 1Q20 annualized EBITDA."

For an analyst ratings summary and ratings history on Focus Financial Partners click here. For more ratings news on Focus Financial Partners click here.

Shares of Focus Financial Partners closed at $30.18 yesterday.

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