Ares Management stock price target raised to $215 from $195 at RBC Capital

Published 18/08/2025, 13:04
Ares Management stock price target raised to $215 from $195 at RBC Capital

Investing.com - RBC Capital has raised its price target on Ares Management, L.P. (NYSE:ARES) to $215.00 from $195.00 while maintaining an Outperform rating on the stock. The company, currently trading at $187.78, has demonstrated strong momentum with a 33% return over the past year, according to InvestingPro data.

The price target increase follows Ares Management’s second-quarter results, with RBC noting that the company’s fundamentals appear to remain strong despite some fee-related earnings margin pressure during the quarter.

RBC Capital attributed the fee-related earnings margin drag in the second quarter to the inclusion of GCP International, though the firm expects margin improvement over time.

The investment bank continues to view Ares Management favorably, describing it as "one of the top global alternative investment platforms" with substantial long-term fee-related earnings growth potential.

RBC maintained its Outperform rating on Ares Management stock while implementing the $20 increase to its price target. Based on InvestingPro’s Fair Value analysis, the stock appears to be trading above its intrinsic value, suggesting investors should carefully consider their entry points.

In other recent news, Ares Management reported its second-quarter after-tax realized income per share at $1.03, which was below the analyst expectation of $1.09. Despite this earnings miss, several investment firms have adjusted their outlook on the company. Citizens JMP raised Ares Management’s stock price target to $205 from $195, maintaining a Market Outperform rating. Similarly, CFRA increased its price target to $205 from $195, citing Ares Management’s strong private credit franchise as a reason for the premium valuation. Keefe, Bruyette & Woods also raised their price target to $203 from $193, while maintaining an Outperform rating, even as Ares’ earnings missed their estimates by $0.04. These recent developments highlight the continued interest and confidence in Ares Management’s market position despite the earnings shortfall.

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