NEW YORK (TheStreet) -- Jefferies increased its target price on Fortress Investment Group (FIG) to $9.50 and set a "hold" rating. The firm noted fundamentals continue to improve and incentive fee realization is increasing visibility.
The stock was rising 1.4% to $8.69 shortly after the market opened on Friday.
Separately, TheStreet Ratings team rates FORTRESS INVESTMENT GRP LLC as a "buy" with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate FORTRESS INVESTMENT GRP LLC (FIG) a BUY. This is driven by some important positives, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its robust revenue growth, notable return on equity, good cash flow from operations, impressive record of earnings per share growth and compelling growth in net income. We feel these strengths outweigh the fact that the company shows low profit margins."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The revenue growth greatly exceeded the industry average of 16.9%. Since the same quarter one year prior, revenues rose by 27.8%. Growth in the company's revenue appears to have helped boost the earnings per share.
- The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. In comparison to the other companies in the Capital Markets industry and the overall market, FORTRESS INVESTMENT GRP LLC's return on equity significantly exceeds that of the industry average and is above that of the S&P 500.
- FORTRESS INVESTMENT GRP LLC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, FORTRESS INVESTMENT GRP LLC continued to lose money by earning -$0.08 versus -$2.46 in the prior year. This year, the market expects an improvement in earnings ($0.79 versus -$0.08).
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Capital Markets industry. The net income increased by 5886.0% when compared to the same quarter one year prior, rising from $0.71 million to $42.38 million.
- Net operating cash flow has increased to $140.44 million or 17.75% when compared to the same quarter last year. In addition, FORTRESS INVESTMENT GRP LLC has also vastly surpassed the industry average cash flow growth rate of -112.87%.
- You can view the full analysis from the report here: FIG Ratings Report