Mon Sep 23 16:51:50 UTC 2024: ## Ares Management’s Price Target Raised by CFRA on Private Credit Growth
**New York, NY** – CFRA Research has boosted its price target for Ares Management (ARES) to $170.00, reflecting a bullish outlook on the private credit market. The firm maintains its “Buy” rating on the stock. This increase follows Ares’ strong second-quarter results, which saw a record $447.2 billion in assets under management (AUM), representing an 18% year-over-year increase.
The upward revision in the price target is driven by the expanding private credit market, which is projected to grow from $1.3 trillion in 2023 to $2.7 trillion by 2028. CFRA believes that Ares Management, as a leading alternative investment manager, is well-positioned to benefit from this shift away from traditional banking and public debt markets.
The firm justifies its optimistic outlook by highlighting Ares’ strong performance, its extensive relationships with institutional investors (accounting for 92% of fundraising), and its potential to expand its footprint in private credit markets across Asia and Europe. CFRA also points to the increasing size of direct lending transactions, with midsize deals now reaching up to $500 million and larger partnerships exceeding $1 billion.
The recent approval by the National Football League (NFL) for private equity firms to acquire up to 10% stakes in teams further strengthens Ares’ position. Ares, along with other firms like Arctos Partners and Blackstone, has committed a substantial $12 billion to this new investment opportunity.
While CFRA remains bullish on Ares, it is important to note that some analysts have revised their earnings estimates downwards, suggesting potential headwinds or a recalibration of expectations. However, with a robust return of 53.93% over the past year and a growing dividend, Ares continues to attract investor interest.
InvestingPro, a real-time data platform, indicates that Ares is currently trading near its 52-week high, further supporting the positive sentiment surrounding the company. Its market capitalization of $31.21 billion underscores its significant presence in the investment management industry.
Investors seeking a deeper analysis of Ares Management can access additional insights from InvestingPro, including detailed financial data and market prospects. These resources can provide valuable guidance for making informed investment decisions in the context of Ares’ strategic positioning within the expanding private credit sector.
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