Ares Commercial downgraded to Underweight from Equal Weight at Wells Fargo

Wells Fargo analyst Donald Fandetti downgraded Ares Commercial to Underweight from Equal Weight with a price target of $7, down from $7.50. The company “will struggle to get back on offense” as interest rate gets cut, plus it faces more book value risk versus peers, the analyst tells investors in a research note. The firm says Ares has the largest office exposure at 37% versus peers at 10%-26%.