The Analyst Verdict: Ares Management In The Eyes Of 6 Experts

In the latest quarter, 6 analysts provided ratings for Ares Management ARES, showcasing a mix of bullish and bearish perspectives.

Summarizing their recent assessments, the table below illustrates the evolving sentiments in the past 30 days and compares them to the preceding months.

Insights from analysts' 12-month price targets are revealed, presenting an average target of $202.67, a high estimate of $224.00, and a low estimate of $166.00. Experiencing a 3.12% decline, the current average is now lower than the previous average price target of $209.20.

Interpreting Analyst Ratings: A Closer Look

A clear picture of Ares Management's perception among financial experts is painted with a thorough analysis of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Analysts frequently update their recommendations based on evolving market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Ares Management. This information provides a snapshot of how analysts perceive the current state of the company.
• Rating: Unveiling insights, analysts deliver qualitative insights into stock performance, 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.

Considering these analyst evaluations in conjunction with other financial indicators can offer a comprehensive understanding of Ares Management's market position. Stay informed and make well-informed decisions with 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. It offers investors investment-related advice and strategies for capital growth. The company's operating segments include Credit Group, Private Equity Group, Real Assets, Secondaries Group, and Others. 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 manages comprehensive equity and debt strategies across real estate & infrastructure investments. The Secondaries Group invests in secondary markets across a range of alternative asset class strategies, including private equity, real estate, infrastructure, & credit.

Understanding the Numbers: Ares Management's Finances

Market Capitalization Perspectives: The company's market capitalization falls below industry averages, signaling a relatively smaller size compared to peers. This positioning may be influenced by factors such as perceived growth potential or operational scale.

Revenue Growth: Over the 3 months period, Ares Management showcased positive performance, achieving a revenue growth rate of 7.8% as of 31 December, 2024. This reflects a substantial increase in the company's 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: The company's net margin is below industry benchmarks, signaling potential difficulties in achieving strong profitability. With a net margin of -2.65%, the company may need to address challenges in effective cost control.

Return on Equity (ROE): Ares Management's ROE falls below industry averages, indicating challenges in efficiently using equity capital. With an ROE of -2.05%, the company may face hurdles in generating optimal returns for shareholders.

Return on Assets (ROA): Ares Management's ROA falls below industry averages, indicating challenges in efficiently utilizing assets. With an ROA of -0.17%, the company may face hurdles in generating optimal returns from its assets.

Debt Management: With a high debt-to-equity ratio of 6.31, Ares Management faces challenges in effectively managing its debt levels, indicating potential financial strain.

Analyst Ratings: What Are They?

Experts in banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their comprehensive research involves attending company conference calls and meetings, analyzing financial statements, and engaging with insiders to generate what are known as analyst ratings for stocks. Typically, analysts assess and rate each stock once per quarter.

Some analysts will also offer forecasts for metrics like growth estimates, earnings, and revenue to provide further guidance on stocks. Investors who use analyst ratings should note that this specialized advice comes from humans and may be subject to error.

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