Wells Fargo & Company Begins Coverage on Ares Management (NYSE:ARES)

Key Points

• Wells Fargo initiated coverage of Ares Management with an “overweight” rating and a $136 price target, implying 15.56% upside from the prior close. The broader analyst consensus is “Moderate Buy,” with an average target of $156.
• Ares reported quarterly EPS of $1.29, slightly above estimates, while revenue reached $1.43 billion and increased 5.8% year over year. Analysts expect full-year EPS of approximately $5.93.
• Institutional investors own about 50.03% of Ares shares, with several major funds recently increasing or initiating positions, signaling continued institutional interest in the asset manager.

Wells Fargo & Company assumed coverage on shares of Ares Management (NYSE:ARES - Get Free Report) in a note issued to investors on Friday, Marketbeat Ratings reports. The brokerage set an "overweight" rating and a $136.00 price target on the asset manager's stock. Wells Fargo & Company's price objective would indicate a potential upside of 15.56% from the stock's previous close.

Several other analysts have also issued reports on ARES. Keefe, Bruyette & Woods raised Ares Management to a "hold" rating in a research note on Monday, July 20th. Deutsche Bank Aktiengesellschaft reissued a "buy" rating and set a $144.00 price target on shares of Ares Management in a research note on Monday, August 3rd. Citigroup restated a "market outperform" rating on shares of Ares Management in a report on Monday, August 3rd. Royal Bank Of Canada upped their price objective on shares of Ares Management from $162.00 to $168.00 and gave the company an "outperform" rating in a research note on Monday, August 3rd. Finally, Piper Sandler started coverage on shares of Ares Management in a report on Thursday, September 24th. They set an "overweight" rating and a $150.00 target price on the stock. One research analyst has rated the stock with a Strong Buy rating, twelve have assigned a Buy rating and six have issued a Hold rating to the company's stock. Based on data from MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and an average target price of $156.00.

Ares Management Trading Up 1.0%

Shares of ARES stock opened at $117.69 on Friday. The business has a 50-day moving average price of $133.54 and a two-hundred day moving average price of $123.69. Ares Management has a 12-month low of $95.80 and a 12-month high of $181.19. 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 market cap of $38.87 billion, a P/E ratio of 53.98, a price-to-earnings-growth ratio of 1.01 and a beta of 1.53.

Ares Management (NYSE:ARES - Get Free Report) last announced its quarterly earnings data on Friday, July 31st. The asset manager reported $1.29 EPS for the quarter, beating the consensus estimate of $1.28 by $0.01. The firm had revenue of $1.43 billion for the quarter, compared to analyst estimates of $1.27 billion. Ares Management had a return on equity of 25.42% and a net margin of 10.63%.The company's revenue was up 5.8% on a year-over-year basis. During the same period in the prior year, the company earned $1.03 EPS. Equities analysts anticipate that Ares Management will post 5.93 EPS for the current fiscal year.

Institutional Investors Weigh In On Ares Management

A number of large investors have recently added to or reduced their stakes in the company. Renaissance Technologies LLC bought a new stake in shares of Ares Management in the first quarter worth about $9,350,000. Junto Capital Management LP purchased a new position in Ares Management during the 2nd quarter valued at about $40,084,000. Bank of Nova Scotia raised its position in Ares Management by 156.1% during the 1st quarter. Bank of Nova Scotia now owns 79,469 shares of the asset manager's stock valued at $8,671,000 after purchasing an additional 48,438 shares during the last quarter. Wealthfront Advisers LLC raised its position in Ares Management by 88.7% during the 1st quarter. Wealthfront Advisers LLC now owns 43,582 shares of the asset manager's stock valued at $4,755,000 after purchasing an additional 20,490 shares during the last quarter. Finally, National Pension Service lifted its holdings in Ares Management by 18.6% in the 2nd quarter. National Pension Service now owns 367,433 shares of the asset manager's stock worth $40,899,000 after buying an additional 57,641 shares during the period. Institutional investors own 50.03% of the company's stock.

Key Stories Impacting Ares Management

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

• Positive Sentiment: Ares raised $4.2 billion for its inaugural global structured solutions strategy, reportedly exceeding its target by more than four times. The strong demand supports expectations for higher fee-earning assets and future management-fee revenue. Ares Blows Past Target to Raise $4.2 Billion for Structured Fund
• Positive Sentiment: Ares provided approximately $1.8 billion at closing as part of a $2 billion commitment to a $6.5 billion multi-jurisdiction debt facility for Phoenix Tower International. The transaction expands Ares’ credit deployment and exposure to telecom infrastructure. Ares Provides $2 Billion Debt Facility to Phoenix Tower International
• Positive Sentiment: Ares is contributing more than €1 billion to Plenitude as part of a broader €1.5 billion capital increase with Eni. The investment deepens Ares’ relationship with the renewable-energy company and could support future asset growth and investment returns. Ares Strengthens Commitment to Plenitude Through €1 Billion Capital Contribution
• Positive Sentiment: Recent analysis describes Ares as a growth-oriented alternative-asset manager with recurring fundraising and dividend growth, despite a broader share-price decline this year. That framing may attract investors seeking both income and expansion potential. Ares Management: The Growth Stock Disguised as an Income Play
• Neutral Sentiment: Ares moved its third-quarter earnings webcast to 9:00 a.m. ET on October 29, with results scheduled before the market opens. The timing change itself does not alter fundamentals, but the report could become the next major catalyst for ARES. Ares Updates Earnings Conference Call Time
• Negative Sentiment: One valuation analysis suggests ARES is near fair value after a strong five-year run, potentially limiting additional upside unless fundraising, earnings or fee-related performance continues to exceed expectations. Ares Management Stock Looks Near Fair Value

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 serves institutional investors, including pension plans, insurance companies, endowments and foundations, as well as wealth-management clients and other investors.

Its investment businesses include direct lending and other private credit strategies, liquid credit, corporate private equity, real estate, infrastructure and secondary investments.

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