Citizens JMP Upgrades Ares Management, L.P. (ARES) to Market Outperform

Citizens JMP analyst Brian McKenna upgraded Ares Management, L.P. (NYSE: ARES) from Market Perform to Market Outperform with a price target of $165.00.

The analyst comments: "The company has $133B of available capital (i.e., dry powder), representing nearly 30% of firmwide AUM (by far the highest in the group). So, given that Ares is a leader in providing credit (and related) solutions to borrowers across all parts of the economy (lower middle market, core middle market, upper middle market, etc.), we believe the firm will be a lender of choice in this backdrop and expect deployment activity will accelerate significantly in the coming quarters. Importantly, of the $133B of dry powder, $81B will begin earning fees once deployed, including $35B in U.S. direct lending, $19B in European direct lending, $10B in alternative credit, and $10B in opportunistic credit, real estate debt, infrastructure debt, and APAC. This $181B represents a significant ~$730M of annual management fees, or 25% of 2024 firmwide management fees, so we see a scenario where management fee growth could actually accelerate over the next 12+ months."

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 $124.73 yesterday.

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