Ares Management (NYSE:ARES) stock has been quietly trending lower over the past month, slipping roughly 11%. This dip comes despite steady annual revenue growth and a strong track record over the past several years.
See our latest analysis for Ares Management.
While Ares Management’s share price has stumbled nearly 11% over the past month, it follows a longer stretch of solid growth, with the five-year total shareholder return at a remarkable 311%. Recent choppiness suggests some investors are questioning momentum, but these longer-term results still highlight the firm’s underlying strength.
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With shares now trading at a notable discount to analyst targets, the real question is whether Ares Management offers genuine value at these levels, or if the market has already factored future growth into the price.
Compared to Ares Management’s last close price of $149.34, the most widely followed narrative sets a fair value considerably higher. This introduces a notable gap and opens the door for debate around the fundamentals driving this view.
Expansion into multiple asset classes (infrastructure, real estate, sports/media, secondaries), with recent successes like the GCP acquisition and the scaling of data center asset management, are expected to deliver higher management and development fees. This is seen as supporting long-term revenue and FRE growth. Robust international fundraising, particularly in Europe and Asia-Pacific, along with ongoing success in deepening distribution partnerships, are broadening Ares’ addressable markets, increasing global deal flow, and positioning the company for sustained earnings growth.
Read the complete narrative.
Want to see what’s really powering this ambitious valuation? The foundation isn’t just typical earnings upgrades. Think global scale, new verticals, and a projected earnings leap that could redefine sector expectations. Uncover the quantitative engine behind these bold price targets and see why the consensus narrative is making waves.
Result: Fair Value of $180.20 (UNDERVALUED)
Have a read of the narrative in full and understand what’s behind the forecasts.
However, intensifying competition and increased reliance on perpetual capital could undermine Ares Management’s narrative if fee pressures or higher redemptions occur.
Find out about the key risks to this Ares Management narrative.