In a report released yesterday, Chris Kotowski from Oppenheimer maintained a Buy rating on Ares Management (ARES), with a price target of $26. The company’s shares closed yesterday at $24.48, close to its 52-week high of $24.88.
Kotowski observed:
“Ares reported solid 1Q19 After-tax Realized Income (AT RI) of $0.35/share versus our and consensus’s $0.37. While slightly below estimates, earnings were up 30% Y/ Y, with AUM and base management fees better than expected; a grab bag of minor items dragged on earnings modestly. Overall, the top-line growth story continues, with FPAUM up 16% Earnings (FRE) growth of 15% on a per share basis from $0.27 to $0.31. On the call management stressed the need to reinvest in new teams to drive such impressive growth, and this was no doubt a significant factor in pushing expenses a bit above our expectations. We continue to recommend the stock and point to excellent growth trends and outlook in coming years.”
According to TipRanks.com, Kotowski is a top 100 analyst with an average return of 12.9% and a 71.7% success rate. Kotowski covers the Financial sector, focusing on stocks such as Apollo Global Management LLC, Fidus Investment Corporation, and BlackRock TCP Capital Corp.
Ares Management has an analyst consensus of Moderate Buy, with a price target consensus of $26.
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Based on Ares Management’s latest earnings release for the quarter ending December 31, the company reported a quarterly net profit of $10.66 million. In comparison, last year the company had a net profit of $39.05 million.
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Ares Management Corp. is engaged in providing investment management and consultancy services. It operates through the following segments: Credit Group, Private Equity Group and Real Estate Group.
