Key Stats for Ares Management Corporation Stock
- Price Change: -10.2%
- Current Price: $132
- Advanced Model Price Target: $250
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What Happened?
Shares of Ares Management Corporation (ARES) closed lower on Tuesday, sliding 10.2% to $132 just one day after being added to the S&P 500 index.
The sharp decline appears to be a sell-the-news reaction following a period of industry-leading growth and record fundraising.
CEO Michael Arougheti recently presented at the Goldman Sachs U.S. Financial Services Conference, where he detailed the firm’s $600 billion in assets under management.
Analysts at Bank of America recently raised their price target on the stock, citing a dominant position in the private credit and real estate markets.
While sector peers like Blackstone (NYSE:BX) and BlackRock (NASDAQ:BLK) navigate shifting interest rate cycles, Ares continues to open new markets.
The firm expects to redeploy capital toward organic growth initiatives to further scale its global alternative asset platform through 2026.
Is Ares Management Corporation Undervalued Today?
The stock has rallied significantly over the last three months, leaving Wall Street cautious. The On the latest conference call, CEO Michael Arougheti discussed the company’s strategy for managing its capital and driving long-term returns.
She stated: “As a management team, we’re thinking about directing that capital to its highest and best use and its highest return.”
Regarding the decision between share buybacks and organic investment, he signaled a preference for building new business lines.
He noted: “my gut tells me that when we get into that phase of our capital management, it’s going to be more about redeploying that capital to, again, create more durable growth engines around the world.”
The firm believes its experience in inorganic growth and strategic innovation has historically resulted in high financial accretion.
Read the full ARES Transcript on TIKR to see the fundraising roadmap >>>
According to TIKR’s Advanced Valuation Model, the recent price dip has created a significant gap between the market price and the firm’s intrinsic value.
- Advanced Model Price Target: $250
- Current Price: $132
- Potential Upside: +90.3%
The investment case for Ares Management (ARES) centers on its transition from a pure credit player into a global multi-asset powerhouse.
If Ares Management (ARES) continues to innovate and open new markets as discussed by management, the gap to $250 could close rapidly in 2026.
Conclusion: The asset management giant is positioned for its next growth leg. With a 90.3% upside potential and a model pointing to $250, Ares Management stock offers a compelling mix of record fundraising and durable global growth through 2026.
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
