Ares Management (NYSE: ARES) Bullish Outlook Reinforced by Acquisition of Walton Street Mexico
TD Cowen maintains a Buy rating and $162.00 price target for Ares Management, L.P. (NYSE: NYSE:), showing confidence in the company's growth potential. The recent acquisition of Walton Street Mexico (WSM) is expected to add approximately $2 billion in industrial real estate assets to Ares Management's portfolio, enhancing its earnings.
The move to acquire WSM signals Ares Management's strategic expansion in the real estate sector, with TD Cowen hinting at more significant activities on the horizon. The market anticipates further developments as the WSM deal progresses towards its expected closure in late 2024.
As Ares Management continues to expand, financial research firm CFRA has raised its price target to $170, citing the growing private credit market. Ares reported an 18% year-over-year increase in total assets under management, reaching $447.2 billion in the second quarter of 2024. The company also announced a 21% increase in third-quarter common dividend to $0.93 per share.
The acquisition of WSM aligns with Ares Management's overall growth strategy and positive outlook. Investors can expect enhanced earnings and potential profitability in the coming years. The company's commitment to returning value to shareholders through dividend payments further solidifies its position in the market.
In conclusion, Ares Management's acquisition of Walton Street Mexico and its strategic growth plans position the company for long-term success in the industrial real estate sector. Investors should closely monitor developments and consider the company's strong financial performance and market potential when making investment decisions.
