JPMorgan Upgrades Ares Capital (ARCC) to Overweight
- Wall Street ends first day of third quarter with solid rebound
- Goldman Sachs Warns Clients of More Equity Market Losses in Second Half of 2022
- Kohl's (KSS) Falls 15% After Ending Sale Talks With Franchise Group and Issuing Q2 Warning
- General Motors Warns It Has 95k Vehicles in Inventory Without Certain Components
- FAAMG Stocks Fall 32% on Average During 1st-Half of 2022
News and research before you hear about it on CNBC and others. Claim your 1-week free trial to StreetInsider Premium here.
JPMorgan analyst Richard Shane upgraded Ares Capital (NASDAQ: ARCC) from Neutral to Overweight with a price target of $22.00.
The analyst comments "We initiate coverage of OGN with a Buy rating and a 12-month price target of $40, implying 26% upside from its current levels. At the core of our investment recommendation is our view that the value currently being attributed to OGN's Women's Health (WH) business by the market, reflects an under-appreciation of OGN's ability to better position assets including Nexplanon and the Fertility products portfolio to benefit from positive secular trends and favorable market dynamics, to deliver growth above historical levels and consensus estimates. Our above consensus forecasts for each franchise underpin our upside valuation assessment of $7bn, vs. the $5bn that we assess is embedded within the current valuation. Further, embedded within our view is uncertainty regarding the prospect that management can abate declining revenue growth across the Established Brands (EB) portfolio. It is our belief that based on our assessment a higher valuation should be ascribed to the WH business, the implied valuation for EB gives the company a fairly wide margin for error in terms of delivery over the near-term. Finally, while we are in-line with consensus on Hadlima (Humira Biosimilar), we see the opportunity for the product to deliver incremental upside given the size of the TAM. We provide further details within."
Shares of Ares Capital closed at $19.80 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Coupang (CPNG) Market Share to Reach 26% in 2023, Says Analyst
- Eni SpA (ENI:IM) (E) PT Raised to EUR18 at Jefferies
- CLSA Upgrades J. Front Retailing Co., Ltd (3086:JP) (JFROF) to Outperform (2)
Create E-mail Alert Related CategoriesAnalyst Comments, Upgrades
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!