Wells Fargo is feeling optimistic about Ares Management Corporation (ARES), a major global alternative investment firm. They’ve boosted their price target.
A Strong Showing Despite Market Volatility
Analyst Michael Brown increased ARES’s price target from $182 to $189, maintaining a positive outlook. He cited the company’s strong performance and promising future. Ares reported a hefty $1.04 billion in Q1, a 38.21% jump.
This positive forecast comes despite recent market turbulence. The initial market downturn, linked to President Trump’s tariff announcements in early April (dubbed “Liberation Day”), caused a dip in Ares’ stock price to around $110. However, ARES has since rebounded impressively, climbing about 48%.
Ares’ Resilient Business Model
Brown’s confidence stems from Ares’ unique business model. Its focus on management fees, low debt, and long-term capital commitments allows it to weather market storms without needing to sell assets. A significant portion (over 72%) of Ares’ assets are in credit-related products. The company also had a record-breaking Q1, raising over $20 billion in new capital commitments.
Current Stock Performance and Disclaimer
ARES is currently trading around $164.60, up over 2% in the last 24 hours.
Disclaimer: This information is for general knowledge and shouldn’t be considered investment advice. Always do your own research before investing. Investing in stocks, cryptocurrencies, or any asset carries risk, and you could lose money.
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