Ares Management (NYSE:ARES) Stock Price Target Raised at Royal Bank Of Canada

Key Points

• Royal Bank of Canada raised Ares Management’s price target to $171 from $168 and maintained an “outperform” rating, implying 34.47% upside from the stock’s $127.17 price.
• Ares modestly exceeded quarterly expectations, reporting EPS of $1.26 versus $1.25 expected and revenue of $1.43 billion versus a $1.24 billion consensus estimate, though revenue declined 13.5% year over year.
• Analyst sentiment remains broadly positive, with a MarketBeat consensus rating of “Moderate Buy” and an average price target of $145.95, while institutional investors own approximately 50% of the company.

Ares Management (NYSE:ARES - Get Free Report) had its price objective increased by stock analysts at Royal Bank Of Canada from $168.00 to $171.00 in a note issued to investors on Friday, Benzinga reports. The firm currently has an "outperform" rating on the asset manager's stock. Royal Bank Of Canada's target price would indicate a potential upside of 34.47% from the stock's current price.

Other analysts have also issued reports about the company. Wall Street Zen lowered Ares Management from a "hold" rating to a "sell" rating in a research report on Saturday, July 4th. Oppenheimer raised their target price on shares of Ares Management from $151.00 to $162.00 and gave the company an "outperform" rating in a research note on Thursday, August 27th. BMO Capital Markets lowered their price target on shares of Ares Management from $134.00 to $130.00 and set a "market perform" rating for the company in a research report on Tuesday. UBS Group dropped their price target on shares of Ares Management from $142.00 to $134.00 and set a "neutral" rating for the company in a research note on Tuesday, October 13th. Finally, Citizens Jmp cut their price objective on shares of Ares Management from $190.00 to $160.00 and set a "market outperform" rating on the stock in a report on Thursday, July 9th. One equities research analyst has rated the stock with a Strong Buy rating, eleven have assigned a Buy rating and nine have assigned a Hold rating to the stock. According to MarketBeat.com, Ares Management has an average rating of "Moderate Buy" and an average price target of $145.95.

Ares Management Trading Down 0.2%

ARES stock traded down $0.30 during trading on Friday, hitting $127.17. The company had a trading volume of 560,234 shares, compared to its average volume of 2,885,644. The company has a quick ratio of 0.26, a current ratio of 0.26 and a debt-to-equity ratio of 1.00. 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 stock has a market cap of $42.00 billion, a price-to-earnings ratio of 58.28, a PEG ratio of 1.12 and a beta of 1.53.

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

Institutional Investors Weigh In On Ares Management

Large investors have recently bought and sold shares of the company. Principal Financial Group Inc. boosted its holdings in Ares Management by 4.4% in the 1st quarter. Principal Financial Group Inc. now owns 4,009,291 shares of the asset manager's stock valued at $437,417,000 after purchasing an additional 169,598 shares during the period. Vulcan Value Partners LLC raised its position in shares of Ares Management by 12.5% in the second quarter. Vulcan Value Partners LLC now owns 1,902,580 shares of the asset manager's stock valued at $211,776,000 after buying an additional 211,404 shares in the last quarter. Janus Henderson Group PLC raised its position in shares of Ares Management by 43.8% in the first quarter. Janus Henderson Group PLC now owns 1,653,078 shares of the asset manager's stock valued at $180,343,000 after buying an additional 503,688 shares in the last quarter. Curated Wealth Partners LLC grew its position in Ares Management by 968.3% during the third quarter. Curated Wealth Partners LLC now owns 1,450,854 shares of the asset manager's stock worth $168,546,000 after buying an additional 1,315,043 shares in the last quarter. Finally, Hamlin Capital Management LLC grew its position in Ares Management by 6.6% during the third quarter. Hamlin Capital Management LLC now owns 1,022,899 shares of the asset manager's stock worth $118,830,000 after buying an additional 63,265 shares in the last quarter. Institutional investors own 50.03% of the company's stock.

Key Ares Management News

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

• Positive Sentiment: Analysts raised price targets. Barclays lifted its target from $139 to $151 and maintained an “overweight” rating, implying substantial upside. Keefe, Bruyette & Woods raised its target from $119 to $130 but kept a “market perform” rating, signaling a more cautious view. Barclays analyst rating Keefe, Bruyette & Woods analyst rating
• Positive Sentiment: Fundraising and asset growth remain strong. Ares raised more than $31 billion during the quarter, invested approximately $35 billion, and increased assets under management to roughly $690.6 billion. The firm also secured an $8 billion first close for its flagship credit fund and said it is on track for a record fundraising year, led by private credit and real assets. Ares flagship credit fund first close
• Positive Sentiment: Quarterly results modestly exceeded expectations. Third-quarter EPS was $1.26 versus the $1.25 consensus, while revenue of $1.43 billion topped the $1.24 billion estimate. Fee-related earnings reached $524.2 million, and Ares expects $300 million to $325 million of 2026 net realized performance income, including $115 million to $125 million in the fourth quarter. Ares third-quarter results
• Positive Sentiment: Credit activity and shareholder returns support sentiment. Ares closed approximately $6.3 billion of U.S. direct-lending commitments in the quarter and declared a $1.35 quarterly dividend, or $5.40 annualized, representing a yield of about 4.2%. The company is also participating with Blue Owl and KKR in financing AI data centers. Ares direct lending activity
• Negative Sentiment: Revenue and GAAP profitability declined year over year. Reported revenue fell 13.5% from the prior-year period, while GAAP net income was $85.3 million, or $0.21 per share. The modest earnings beat and management’s positive outlook may not fully offset concerns about slower markets and valuation risk.

Ares Management Company Profile

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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