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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