JP Morgan Sweeps Financials; Ares Takes a Hit

JP Morgan dominated Friday's analyst tape with a broad sweep of US financial stocks, lifting target prices across banks while cutting its view on one of the sector's priciest names.

ARES Management was the standout. Analyst Kenneth Worthington trimmed his target on the alternative asset manager to $154 from $155 and kept a Buy rating, but the direction of travel matters. Ares trades at a $28.5 billion market cap. Short interest sits at just 7.2% of free float, meaning the bear camp is thin. Worthington's modest cut suggests valuation discipline rather than a structural concern.

The bank upgrades were more upbeat. JP Morgan's Vivek Juneja lifted targets on WFC, USB, TFC, RF, PNC, STT and NTRS in a single sweep, tracking better-than-expected Q3 results across the sector.

The biggest single-stock move outside banks came from waste management. JP Morgan raised its target on RSG to $265 from $245, a $20 jump. Republic Services carries a $72 billion market cap and just 1.4% short interest, reflecting the defensive quality of the business.

SYK saw a consensus target drift lower to $350 from $359, a quiet trim after the medical device maker's recent run. At $119 billion in market cap, even small shifts in consensus carry weight.