4 Analysts Assess Ares Management: What You Need To Know

During the last three months, 4 analysts shared their evaluations of Ares Management ARES, revealing diverse outlooks from bullish to bearish.

The following table encapsulates their recent ratings, offering a glimpse into the evolving sentiments over the past 30 days and comparing them to the preceding months.

The 12-month price targets assessed by analysts reveal further insights, featuring an average target of $121.75, a high estimate of $135.00, and a low estimate of $112.00. This upward trend is apparent, with the current average reflecting a 8.06% increase from the previous average price target of $112.67.

Investigating Analyst Ratings: An Elaborate Study

An in-depth analysis of recent analyst actions unveils how financial experts perceive Ares Management. The following summary outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Analysts respond to changes in market conditions and company performance, frequently updating their recommendations. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Ares Management. This information offers a snapshot of how analysts perceive the current state of the company.
• Rating: Offering a comprehensive view, analysts assess stocks qualitatively, spanning from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Ares Management compared to the broader market.
• Price Targets: Analysts navigate through adjustments in price targets, providing estimates for Ares Management's future value. Comparing current and prior targets offers insights into analysts' evolving expectations.

To gain a panoramic view of Ares Management's market performance, explore these analyst evaluations alongside essential financial indicators. Stay informed and make judicious decisions using our Ratings Table.

Stay up to date on Ares Management analyst ratings.

Delving into Ares Management's Background

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.

Breaking Down Ares Management's Financial Performance

Market Capitalization Analysis: The company's market capitalization is above the industry average, indicating that it is relatively larger in size compared to peers. This may suggest a higher level of investor confidence and market recognition.

Revenue Growth: Ares Management's remarkable performance in 3 months is evident. As of 30 September, 2023, the company achieved an impressive revenue growth rate of 4.47%. This signifies a substantial increase in the company's top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Financials sector.

Net Margin: Ares Management's net margin is below industry averages, indicating potential challenges in maintaining strong profitability. With a net margin of 5.6%, the company may face hurdles in effective cost management.

Return on Equity (ROE): The company's ROE is a standout performer, exceeding industry averages. With an impressive ROE of 3.24%, the company showcases effective utilization of equity capital.

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.

How Are Analyst Ratings Determined?

Benzinga tracks 150 analyst firms and reports on their stock expectations. Analysts typically arrive at their conclusions by predicting how much money a company will make in the future, usually the upcoming five years, and how risky or predictable that company's revenue streams are.

Analysts attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish their ratings on stocks. Analysts typically rate each stock once per quarter or whenever the company has a major update.

Analysts may enhance their evaluations by incorporating forecasts for metrics like growth estimates, earnings, and revenue, delivering additional guidance to investors. It is vital to acknowledge that, although experts in stocks and sectors, analysts are human and express their opinions when providing insights.

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