B.Riley Upgrades Ares Capital (ARCC) to Buy

B.Riley analyst Sean-Paul Adams upgraded Ares Capital (NASDAQ: ARCC) from Neutral to Buy with a price target of $23.50 (from $22.50).

The analyst comments: "We are upgrading our Ares Capital Corp. (ARCC) from Neutral to Buy and increasing our PT from $22.50 to $23.50. Adj. NII earnings of $0.50 matched our expectations, and NAV grew modestly. While earnings pressures have emerged across the BDC space, we believe the historical track record of ARCC's ability to deploy capital, generate above-average recovery rates vs. the peer group in periods of economic volatility, while maintaining NAV preservation, lends itself to outperform the peer group—especially in this current origination environment. We see an attractive risk/reward with the high-quality, diversified portfolio, robust credit quality, and fully covered dividend."

For an analyst ratings summary and ratings history on Ares Capital click here. For more ratings news on Ares Capital click here.

Shares of Ares Capital closed at $22.54 yesterday.

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