UPDATE: Ares Management, L.P. (ARES) PT Raised to $56 at Goldman Sachs, Downgrades to Buy

(Updated - January 5, 2021 5:29 AM EST)

(updating comment)

Goldman Sachs analyst Alexander Blostein raised the price target on Ares Management, L.P. (NYSE: ARES) to $56.00 (from $50.00) while downgrading to Buy (from Conviction Buy).

The analyst comments "We remove ARES from the America’s Conviction List but remain Buy-rated on the shares with a $56 ($50 prior) price target or +19% upside to the current share price. ARES remains among the best FRE growth stories in the space (GSe +20% FRE/share growth from 2020-22E) amid accelerating management fees and a healthy margin expansion outlook. Specifically, fundraising momentum across the franchise remains robust, deployment of shadow AUM, which is likely to accelerate, remains a meaningful management fee growth driver, new initiatives (Asia, Insurance) is an incremental source of growth and the continued scaling of newer products/strategies should drive
150-300bps of margin expansion annually over the next few years."

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