CFRA Upgrades Ares Management, L.P. (ARES) to Buy

CFRA analyst Kenneth Leon upgraded Ares Management, L.P. (NYSE: ARES) from Hold to Buy with a price target of $155.00 (from $140.00).

The analyst comments "ARES is a leading alternative asset manager in private credit. We raise our target by $15 to $155 on a forward P/E of 26.3x our 2025 EPS view, a premium to the 24.2x three-year historic average. We keep our 2024 EPS at $4.30 and increase 2025's by $0.50 to $5.90 (consensus $6.00). ARES posted Q2 2024 EPS of $0.99, $0.01 better than consensus. Management fees were +17% Y/Y, with total AUM at $447.2B (+18%) and fee paying AUM at $276B +14%. By segment, Credit was $323.1B (72% of total AUM), Real Assets $67.7B (15%), Private Equity $24.6B (6%), and Secondaries/Other 31.8B (7%). ARES raised $26.0B in Q2, with the largest inflows in Credit (77% of the total), Real Assets (16%), Secondaries (3%), and Other/Insurance (4%). Available capital (i.e., dry powder) was $70.8B and total deployments came in at $26B. In Q2, perpetual capital was $116.3B vs. $99.5B (+16.9%). Dispositions are expected in European funds later in 2024. We also like $83.2B of AUM not yet paying fees - some funds will begin to pay fees ahead."

For an analyst ratings summary and ratings history on Ares Management, L.P. click here. For more ratings news on Ares Management, L.P. click here.

Shares of Ares Management, L.P. closed at $149.16 yesterday.

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