Alternative Investments And Global Expansion Will Unlock Fee Potential

Ares Management's analyst price target has shifted modestly downward from $193.69 to $191.00, as analysts cite strong fundamentals but acknowledge a slower revenue growth outlook and increased market competition.

Analyst Commentary

Recent analyst updates on Ares Management reflect a balance of both optimism and caution regarding the firm’s future performance and valuation drivers. Analysts have weighed in on the company’s strengths in private credit, its asset management business, and the challenges it faces amid evolving market dynamics.

Bullish Takeaways

• Bullish analysts note that Ares Management continues to demonstrate “solid” fundraising capabilities, supporting the company’s ability to deliver stable management fees and expand its asset base.
• Investment performance across Ares’ business lines remains healthy, which underpins the company’s reputation for strong execution and long-term competitive advantage.
• Target price increases reflect continued confidence in the company’s growth trajectory and resilience within the alternative asset management sector.
• Expectations for stronger investing activity highlight the firm’s overall operational momentum, despite mixed short-term results.

Bearish Takeaways

• Bearish analysts highlight mounting competition in private markets, which may weigh on Ares’ ability to maintain industry-leading growth rates.
• Macro headwinds are expected to persist, potentially curbing near-term risk/reward opportunities and pressuring valuation multiples across the sector.
• Returns for the upcoming quarter are expected to be mixed, with muted realizations and “lumpy” performance income possibly leading to earnings volatility.
• Given these uncertainties, some analysts offer more conservative price targets and neutral ratings, viewing other alternative managers as more attractive on a near-term basis.

What's in the News

• The owners of the EPIC Crude pipeline, including Ares Management, are exploring a potential sale of the asset. The pipeline may be valued around $3 billion including debt (Reuters).
• Ares Management, which owns a 34% stake in Atletico Madrid's holding company, is reportedly considering selling part or all of its stake as Apollo Global enters talks to take a stake in the Spanish football club (Financial Times).
• Ares Management launched the Ares Core Infrastructure Fund (AUT) in Australia and is offering local investors access to its U.S. infrastructure strategy. The fund reached about AUD 1.8 billion in assets under management as of July 2025.
• Ares, through a fund managed by its Infrastructure Opportunities strategy, established Tango Holdings in partnership with Savion Equity, a subsidiary of Shell. This partnership will manage and develop nearly 500 megawatts of solar projects across several U.S. states.

Valuation Changes

• The consensus analyst price target has declined modestly from $193.69 to $191.00.
• The discount rate has risen slightly from 8.66% to 8.81%.
• The revenue growth expectation has fallen significantly, moving from 13.69% to 9.25%.
• The net profit margin has improved, increasing from 31.19% to 35.15%.
• The future P/E has dropped sharply from 44.91x to 29.80x.