Deep Dive Into Ares Management Stock: Analyst Perspectives (4 Ratings)

In the preceding three months, 4 analysts have released ratings for Ares Management ARES, presenting a wide array of perspectives from bullish to bearish.

In the table below, you'll find a summary of their recent ratings, revealing the shifting sentiments over the past 30 days and comparing them to the previous months.

The 12-month price targets, analyzed by analysts, offer insights with an average target of $115.75, a high estimate of $122.00, and a low estimate of $109.00. A 0.5% drop is evident in the current average compared to the previous average price target of $116.33.

Investigating Analyst Ratings: An Elaborate Study

The analysis of recent analyst actions sheds light on the perception of Ares Management by financial experts. The following summary presents key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Analysts adapt their recommendations to changing market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their response to recent developments related to Ares Management. This information provides a snapshot of how analysts perceive the current state of the company.
• Rating: Analysts assign qualitative assessments to stocks, ranging from 'Outperform' to 'Underperform'. These ratings convey the analysts' expectations for the relative performance of Ares Management compared to the broader market.
• Price Targets: Analysts explore the dynamics of price targets, providing estimates for the future value of Ares Management's stock. This examination reveals shifts in analysts' expectations over time.

Understanding these analyst evaluations alongside key financial indicators can offer valuable insights into Ares Management's market standing. Stay informed and make well-considered decisions with our Ratings Table.

Stay up to date on Ares Management analyst ratings.

Unveiling the Story Behind Ares Management

Ares Management Corp is an asset management company based in the United States. It offers investors investment-related advice and strategies for capital growth. The company's operating segments include Credit Group, Private Equity Group, Real Estate Group, Secondaries Group, and Strategic Initiatives. Its Credit Group generates maximum revenue, and manages credit strategies across the liquid and illiquid spectrum. Private Equity Group manages investment strategies categorized as corporate private equity, infrastructure and power, and special opportunities, Real Estate Group is engaged in managing real estate equity and debt strategies. The Secondary Solutions Group invests in secondary markets across a range of asset class including private equity, real estate, and infrastructure.

Ares Management: Delving into Financials

Market Capitalization Analysis: Reflecting a smaller scale, the company's market capitalization is positioned below industry averages. This could be attributed to factors such as growth expectations or operational capacity.

Positive Revenue Trend: Examining Ares Management's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 4.47% as of 30 September, 2023, showcasing a substantial increase in top-line earnings. When compared to others in the Financials sector, the company faces challenges, achieving a growth rate lower than the average among peers.

Net Margin: Ares Management's net margin is below industry standards, pointing towards difficulties in achieving strong profitability. With a net margin of 5.6%, the company may encounter challenges in effective cost control.

Return on Equity (ROE): Ares Management's ROE lags behind industry averages, suggesting challenges in maximizing returns on equity capital. With an ROE of 3.24%, the company may face hurdles in achieving optimal financial performance.

Return on Assets (ROA): Ares Management's ROA is below industry standards, pointing towards difficulties in efficiently utilizing assets. With an ROA of 0.24%, the company may encounter challenges in delivering satisfactory returns from its assets.

Debt Management: Ares Management's debt-to-equity ratio stands notably higher than the industry average, reaching 8.2. This indicates a heavier reliance on borrowed funds, raising concerns about financial leverage.

The Significance of Analyst Ratings Explained

Analysts are specialists within banking and financial systems that typically report for specific stocks or within defined sectors. These people research company financial statements, sit in conference calls and meetings, and speak with relevant insiders to determine what are known as analyst ratings for stocks. Typically, analysts will rate each stock once a quarter.

Some analysts publish their predictions for metrics such as growth estimates, earnings, and revenue to provide additional guidance with their ratings. When using analyst ratings, it is important to keep in mind that stock and sector analysts are also human and are only offering their opinions to investors.

This article was generated by Benzinga's automated content engine and reviewed by an editor.