Will This Target Price Decrease Hurt Fortress Investment Group (FIG) Stock Today? (Update)

Update (9:49 a.m.): Updated with Tuesday market open information.

NEW YORK (TheStreet) -- Jefferies decreased its target price on Fortress Investment Group  (FIG) to $8 and set a "hold" rating. The firm noted a generally modest earnings revision.

The stock was down 0.28% to $7.02 at 9:48 a.m. on Tuesday.

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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 multiple strengths, 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, expanding profit margins, solid stock price performance and impressive record of earnings per share growth. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • The revenue growth greatly exceeded the industry average of 7.7%. Since the same quarter one year prior, revenues rose by 35.4%. 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. Compared to other companies in the Capital Markets industry and the overall market, FORTRESS INVESTMENT GRP LLC's return on equity significantly exceeds that of both the industry average and the S&P 500.
  • The gross profit margin for FORTRESS INVESTMENT GRP LLC is rather high; currently it is at 57.74%. It has increased significantly from the same period last year. Along with this, the net profit margin of 25.78% is above that of the industry average.
  • Compared to where it was a year ago today, the stock is now trading at a higher level, reflecting both the market's overall trend during that period and the fact that the company's earnings growth has been robust. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
  • 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 turned its bottom line around by earning $0.65 versus -$0.08 in the prior year. This year, the market expects an improvement in earnings ($0.91 versus $0.65).
  • You can view the full analysis from the report here: FIG Ratings Report

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

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