In a report released yesterday, Allison M. Taylor from Oppenheimer maintained a Buy rating on Ares Management (NYSE: ARES), with a price target of $30. The company’s shares closed yesterday at $21.25.
Taylor noted:
“Both fundraising and capital deployment have been growing faster than our expectations, and this is very positive for fee-related earnings. In direct lending where ~$15B of the $19B of AUM was raised in 1H18, ARES earns fees on assets upon deployment, and deployment has been robust causing shadow AUM to convert more quickly to fee paying AUM, driving faster FRE growth. This is the dynamic on display in the 2Q earnings report. We also believe the potential for ARCC’s contribution is underappreciated, since ARCC, which is performing quite well, is currently running at half their allowable leverage level and with fee waivers expiring next year. We believe ARES is an outstanding value at just 10x 2019E EPS and continue to recommend the stock.”
According to TipRanks.com, Taylor is a 3-star analyst with an average return of 7.9% and a 68.4% success rate. Taylor covers the Financial sector, focusing on stocks such as Apollo Global Management LLC, Oaktree Capital Group Llc, and Ares Capital Corp.
The word on The Street in general, suggests a Strong Buy analyst consensus rating for Ares Management with a $27.33 average price target.
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Ares Management’s market cap is currently $2.07B and has a P/E ratio of 14.66. The company has a Price to Book ratio of 5.55.
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Ares Management LP is engaged in providing investment management and consultancy services. It operates through the following segments: Credit Group, Private Equity Group and Real Estate Group.
