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Investing.com - CFRA raised its price target on Ares Management, L.P. (NYSE:ARES) to $205.00 from $195.00 on Monday, while maintaining a Buy rating on the stock. The company, currently valued at $61.6 billion, has demonstrated strong momentum with a 34.7% return over the past year.
The research firm cited Ares Management’s "premier private credit franchise" as justification for the premium valuation, noting the price target represents a forward P/E multiple of 34.2x, which remains below the company’s 10-year historic average of 50.1x. According to InvestingPro analysis, the stock is currently trading above its Fair Value, with a P/E ratio of 107x and P/B ratio of 20.5x.
CFRA simultaneously lowered its fee-related earnings (FRE) estimates for the alternative asset manager, reducing its 2025 projection by $0.35 to $5.15 per share and its 2026 forecast by $0.40 to $6.00 per share, citing "some delays on fee realizations."
The research firm noted that Ares Management shares have a beta of 1.39, indicating higher volatility compared to the broader market.
Ares Management currently offers a dividend yield of 2.41%, which CFRA highlighted is above the average for the broader U.S. equity market.
In other recent news, Ares Management Corporation reported its second-quarter earnings, which fell short of analyst expectations. The company announced an after-tax realized income per share of $1.03, missing the anticipated $1.09. This shortfall was attributed primarily to lower performance-related earnings. Despite the earnings miss, Keefe, Bruyette & Woods raised its price target for Ares Management to $203, up from $193, while maintaining an Outperform rating. The investment firm noted that the company’s earnings were $0.04 below its estimates and $0.03 below the consensus. These developments highlight the mixed signals investors are receiving about Ares Management’s financial performance and future prospects.
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