Wells Fargo analyst Michael Brown has reiterated their bullish stance on ARES stock, giving a Buy rating yesterday.
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Michael Brown’s rating is based on several promising developments for Ares Management that outweigh the recent underperformance. Despite some softness in the fourth quarter results, Brown sees Ares as a top pick due to several upcoming catalysts. These include the approaching closure of the GCP deal, which is expected to enhance diversification and growth, as well as the potential inclusion in the S&P 500 index. Moreover, there is optimism around overcoming headwinds related to distribution fees and anticipated growth in performance fees.
Ares Management’s fundraising efforts have been robust, with expectations to maintain near-record levels. The firm’s wealth channel is showing significant traction, driven by international expansion and new product introductions. Although there has been a slight decrease in EPS estimates, improved market sentiment has led to a higher price target for Ares Management’s stock. Consequently, these factors collectively support the Buy rating assigned by Michael Brown.
In another report released yesterday, Barclays also maintained a Buy rating on the stock with a $217.00 price target.