Ares Management (NYSE:ARES) Given New $158.00 Price Target at TD Cowen

Key Points

• TD Cowen lowered its price target for Ares Management from $159 to $158 while maintaining a “buy” rating, implying about 25% upside from the reported $126.27 share price.
• Analyst sentiment remains favorable, with the stock carrying a consensus “Moderate Buy” rating and an average price target of $146.16; RBC and Oppenheimer recently raised their targets to $171 and $162, respectively.
• Ares beat third-quarter estimates with $1.26 in EPS and $1.43 billion in revenue, while fundraising remained strong; however, revenue fell 13.5% year over year and investors face risks from private-credit redemptions and slower realizations.

Ares Management (NYSE:ARES - Get Free Report) had its price objective dropped by investment analysts at TD Cowen from $159.00 to $158.00 in a research report issued to clients and investors on Friday, Benzinga reports. The brokerage presently has a "buy" rating on the asset manager's stock. TD Cowen's price objective indicates a potential upside of 25.13% from the stock's current price.

A number of other research firms also recently weighed in on ARES. Royal Bank Of Canada upped their target price on Ares Management from $168.00 to $171.00 and gave the company an "outperform" rating in a research report on Friday. Oppenheimer boosted their price target on Ares Management from $151.00 to $162.00 and gave the company an "outperform" rating in a research note on Thursday, August 27th. UBS Group cut their price objective on shares of Ares Management from $142.00 to $134.00 and set a "neutral" rating for the company in a research report on Tuesday, October 13th. JPMorgan Chase & Co. upped their price objective on shares of Ares Management from $143.00 to $153.00 and gave the stock an "overweight" rating in a research report on Monday, August 3rd. Finally, Keefe, Bruyette & Woods raised their target price on shares of Ares Management from $119.00 to $130.00 and gave the company a "market perform" rating in a report on Friday. One analyst has rated the stock with a Strong Buy rating, eleven have given a Buy rating and nine have given a Hold rating to the company. According to data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and an average price target of $146.16.

Ares Management Stock Performance

NYSE ARES traded down $1.20 during trading on Friday, reaching $126.27. The company's stock had a trading volume of 1,836,298 shares, compared to its average volume of 2,891,498. The firm has a 50 day moving average price of $126.24 and a 200 day moving average price of $125.49. Ares Management has a 12 month low of $95.80 and a 12 month high of $181.19. The firm has a market capitalization of $41.70 billion, a price-to-earnings ratio of 57.86, a price-to-earnings-growth ratio of 1.12 and a beta of 1.53. The company has a current ratio of 0.26, a quick ratio of 0.26 and a debt-to-equity ratio of 1.00.

Ares Management (NYSE:ARES - Get Free Report) last released its quarterly earnings results on Thursday, October 29th. The asset manager reported $1.26 earnings per share for the quarter, beating analysts' consensus estimates of $1.25 by $0.01. The company had revenue of $1.43 billion during the quarter, compared to the consensus estimate of $1.24 billion. Ares Management had a net margin of 10.63% and a return on equity of 25.42%. The firm's quarterly revenue was down 13.5% on a year-over-year basis. During the same period in the previous year, the business earned $1.15 earnings per share. As a group, equities analysts anticipate that Ares Management will post 5.80 EPS for the current fiscal year.

Institutional Investors Weigh In On Ares Management

Hedge funds have recently added to or reduced their stakes in the business. Provenance Wealth Advisors LLC acquired a new stake in shares of Ares Management in the 3rd quarter worth about $56,000. Oregon Public Employees Retirement Fund increased its holdings in Ares Management by 6.2% during the 3rd quarter. Oregon Public Employees Retirement Fund now owns 27,500 shares of the asset manager's stock worth $3,195,000 after purchasing an additional 1,600 shares in the last quarter. Greenleaf Trust increased its holdings in Ares Management by 4.6% during the 3rd quarter. Greenleaf Trust now owns 3,236 shares of the asset manager's stock worth $376,000 after purchasing an additional 142 shares in the last quarter. Mirae Asset Global Investments Co. Ltd. bought a new stake in Ares Management during the third quarter worth $34,849,000. Finally, Profund Advisors LLC purchased a new stake in shares of Ares Management in the third quarter valued at about $242,000. 50.03% of the stock is currently owned by institutional investors and hedge funds.

Key Headlines Impacting Ares Management

Here are the key news stories impacting Ares Management this week:

• Positive Sentiment: Analysts raised their price targets following the company’s quarterly results. Barclays lifted its target to $151 and maintained an “overweight” rating, while Wells Fargo raised its target to $141 and RBC increased its target to $171 with an “outperform” rating. Keefe, Bruyette & Woods also raised its target to $130, although it retained a “market perform” rating. Analyst price target updates
• Positive Sentiment: Ares exceeded third-quarter expectations, reporting adjusted earnings of $1.26 per share versus the $1.25 consensus estimate and revenue of $1.43 billion versus the $1.24 billion forecast. Assets under management rose to approximately $690.6 billion, supported by higher management fees and capital inflows. Ares Q3 earnings beat estimates
• Positive Sentiment: Fundraising momentum remains strong. Ares raised more than $31 billion in gross commitments during the quarter, including an $8 billion first close for its flagship credit fund, and expects $300 million to $325 million in 2026 net realized performance income. The firm also closed approximately $6.3 billion in U.S. direct-lending commitments during the quarter. Ares flagship credit fund fundraising
• Positive Sentiment: Ares declared a quarterly dividend of $1.35 per share, equivalent to $5.40 annually and an indicated yield of roughly 4.2%, which may appeal to income-oriented investors.
• Neutral Sentiment: Ares, Blue Owl and KKR are investing in artificial-intelligence data centers, adding potential exposure to a fast-growing infrastructure theme, although the immediate financial impact was not disclosed. AI data-center investment
• Negative Sentiment: Revenue declined 13.5% from the year-earlier period, while GAAP net income attributable to Ares was $85.3 million, or $0.21 per share. Investors may also remain cautious about private-credit redemption concerns and the effect of a slower market on realizations and performance fees.

About Ares Management

Ares Management Corporation NYSE: ARES is a global alternative investment manager that provides investment solutions across credit, private equity, real assets and secondaries. The company manages capital on behalf of institutional investors, pension funds, insurance companies, sovereign wealth funds, family offices and individual investors.

Its investment activities include direct lending and other credit strategies, control and minority investments in private companies, real estate and infrastructure investments, and secondary-market transactions involving private assets and fund interests.

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