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Investing.com - JPMorgan upgraded APi Group Corporation (NYSE:APG) from Neutral to Overweight on Tuesday, while raising its price target to $42.00 from $31.00. The stock, currently trading at $34.50, has already delivered an impressive 43.87% return year-to-date. InvestingPro data shows strong analyst consensus, with multiple experts revising earnings estimates upward.
The upgrade follows JPMorgan’s on-site meetings with management and customer site visits conducted in early July, which reinforced the firm’s conviction in APG’s execution capabilities, cultural consistency, and operational rigor.
JPMorgan now views APi Group as a capital-light, cyclically resilient platform with potential for valuation re-rating based on its observations during these recent interactions.
Despite APi Group stock performing well year-to-date, JPMorgan sees further upside potential as the company’s fundamentals strengthen.
The firm specifically cited improved visibility into margin expansion and capital deployment as key factors supporting its more bullish outlook on the stock.
In other recent news, APi Group Corporation has announced its ambitious financial targets, aiming for over $10 billion in revenue and an adjusted EBITDA margin of 16% by 2028. The company plans to achieve more than $3 billion in cumulative adjusted free cash flow through the same period. In a strategic move, APi Group has amended its credit agreement, increasing its revolving credit commitments by $250 million to a total of $750 million. This amendment also extends the maturity date for the revolving credit and offers more favorable interest rate terms. Additionally, the company announced a three-for-two stock split effective June 30, 2025, to enhance share liquidity. Analyst firms RBC Capital and Truist Securities have responded positively, with RBC Capital raising its price target to $52 and Truist to $54, both maintaining favorable ratings. RBC Capital highlighted APi’s strong free cash flow and potential for acquisitions, while Truist emphasized the company’s undervaluation and strategic positioning. These developments reflect APi Group’s focus on growth and strategic financial management.
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