UBS Cuts Ares Management Target 25% to $148, Keeps Neutral Rating
On Feb. 20, UBS cut its price target on Ares Management to $148 from $198 and kept a Neutral rating, following TD Cowen’s reduction to $167 and RBC’s cut to $180. In Q4, Ares reported $1.50B in revenue versus $1.33B consensus, lifted AUM past $600B and raised its dividend by 20%.
1. UBS Price Target Revision
On February 20, UBS reduced its price target on Ares Management to $148 from $198 while maintaining a Neutral rating, reflecting concerns over shifting macro and micro dynamics in the alternative asset management sector.
2. Peer Analyst Adjustments
Earlier in February, TD Cowen lowered its target on Ares to $167 from $200 and upheld a Buy rating, and RBC Capital trimmed its target to $180 from $200 while keeping an Outperform stance, as all three firms revised expectations for asset managers.
3. Q4 Financial Performance
In the fourth quarter, Ares reported revenue of $1.50 billion versus a $1.33 billion estimate, pushed assets under management past $600 billion, completed over $100 billion in fundraising and investing, and announced a 20% increase in its quarterly common stock dividend.