NEW YORK (TheStreet) -- RCS Capital Corp (RCAP - Get Report) stock has been initiated with an "overweight" rating and $25 price target, Barclays said Thursday. The firm said the company is well positioned to leverage favorable trends in both the independent advisor and alternative spaces.
"At current levels, we see any perceived risk as priced in and posit that not enough credit is being given to the strong growth trends we anticipate will fuel sizeable earnings expansion," analysts wrote in a report.
"The independent financial advisor segment is what we consider to be the crown jewel of the re-made RCAP franchise. The firm is in the process of acquiring and integrating five independent financial advisor firms to build its offering. This shift in business mix not only offers the opportunity for synergies, but provides a steadier and better-diversified business model over time," they continued.
Barclays forecasts earnings of $1.47 a share in fiscal 2014 and $1.95 a share in fiscal 2015.