Wells Fargo is updating its outlook on Ares Management Corporation (ARES), reportedly issuing a bullish forecast for the $52 billion global alternative investment manager.
Wells Fargo analyst Michael Brown is raising Ares’s price target from $182 to $189, while reiterating an overweight rating, reports Insider Monkey.
-->Brown says the firm’s ongoing performance and future prospects remain strong.
Ares Management reported $1.04 billion in the first quarter of the year, a 38.21 increase.
The firm is also well-positioned to perform well despite the market volatility caused by US President Donald Trump’s announced tariffs on April 2nd, so-called “Liberation Day,” and other geopolitical events, which has led to a decline in liquid credit and equity markets due to traditional capital providers shifting to a risk-off position, according to the report.
Ares plummeted to a low of about $110 on April 4th, but has since surged about 48 since then.
According to the analysis, Ares’ business model allows it to avoid having to sell assets amid market uncertainty due “to its management fee-centric approach, low balance sheet leverage and reliance on long-dated and locked-up third-party capital.”
Over 72 of Ares’s total assets under management are in credit-related products.
Also in the first quarter of the year, Ares raised over $20 billion in gross new capital commitments, the company’s highest Q1 fundraising on record.
ARES is trading for $164.60 at time of writing, up more than 2 in the last 24 hours.
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