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On Thursday, JMP Securities analyst Brian McKenna updated the firm’s outlook on Ares Management, L.P. (NYSE:ARES), lifting the price target from $165.00 to $185.00, while reiterating a Market Outperform rating. The revision follows Ares Management’s first quarter earnings of 2025, which revealed stronger underlying fundamentals and a reduced tax rate due to the GCP acquisition. The alternative asset manager, currently valued at $52.88 billion, has demonstrated robust growth with revenue increasing 21% over the last twelve months. According to InvestingPro data, analyst price targets currently range from $135 to $195.
In his analysis, McKenna increased his estimated earnings per share (EPS) for the year 2025 to $5.15, up from the previous $4.95 forecast. For 2026, the EPS estimate saw a smaller adjustment, rising to $6.10 from $6.00. These adjustments are attributed to the company’s robust performance and an advantageous tax environment post-acquisition. InvestingPro analysis indicates the company is trading at a high P/E multiple of 89.92x, while maintaining a healthy dividend yield of 2.76%.
The new price target of $185.00 reflects a price-to-earnings (P/E) multiple of approximately 30.0 times the updated 2026 EPS estimate. This is an increase from the prior multiple of roughly 27.5 times. McKenna’s revised P/E multiple suggests a bullish outlook on the stock, indicating an expectation of continued growth and profitability for Ares Management.
Ares Management’s recent earnings report has been a catalyst for the updated analysis, demonstrating the company’s ability to exceed expectations. The adjustments made by JMP Securities are based on the company’s current financial health and the anticipated benefits from the recent acquisition.
Investors and market watchers will be keeping a close eye on Ares Management’s stock as it responds to the new price target and JMP Securities’ continued confidence in the company’s market performance. The stock has delivered a strong 19.98% return over the past year. For deeper insights into Ares Management’s valuation and growth prospects, including 10+ additional ProTips and comprehensive financial analysis, check out the full research report available on InvestingPro.
In other recent news, Ares Management Corp reported strong first-quarter 2025 financial results, exceeding Wall Street expectations with an earnings per share (EPS) of $1.09, surpassing the forecast of $0.98. The company also reported revenues of $922 million, outpacing the anticipated $912.36 million. Ares Management’s acquisition of GCP International contributed to its robust performance, enhancing its infrastructure capabilities and increasing available capital to $142 billion. Analysts have responded positively to these developments, with Keefe, Bruyette & Woods raising their price target for Ares Management to $180, while TD Cowen and JPMorgan increased their targets to $184 and $163, respectively. TD Cowen analysts highlighted Ares Management’s growth potential and resilience, while JPMorgan noted the firm’s successful integration of GCP, which has bolstered its financial standing. Despite a slight shortfall in fundraising expectations, Ares Management’s fee-related and performance-related earnings have shown significant growth, reflecting the company’s strategic positioning in the market. These developments underscore Ares Management’s ability to navigate market volatility and maintain a stable position in the asset management industry.
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