Key Takeaways
- • RBC Capital raised Ares Management's price target to $168 from $162, implying 24.37% upside from current levels, while maintaining an Outperform rating.
- • Ares Management achieved record second-quarter 2026 fundraising of $36 billion, dramatically exceeding RBC's estimate of $17 billion and consensus expectations of $21 billion.
- • The firm reported Q2 2026 revenue of $1.43 billion, beating Wall Street consensus of $1.33 billion, with record assets under management and elevated fee-related earnings.
- • Ares trades at 19.1 times forward earnings, a 20% discount to its long-term average multiple of 23.9 times, while maintaining a 4.4% dividend yield with six consecutive years of dividend growth.
- • Ares ranks among RBC Capital's top three picks in the U.S. alternative asset management sector, with stock performance outpacing both alternative asset managers (+2%) and the S&P 500 (+3%) following Q2 results.
Summary
RBC Capital upgraded its outlook on Ares Management on August 3, 2026, raising the price target to $168 from $162 while sustaining an Outperform rating on the alternative asset manager. The $6 increase reflects confidence in the firm's exceptional fundraising momentum and operational execution in the second quarter, positioning the stock for further appreciation from its prevailing trading levels.
The primary catalyst driving RBC's target increase is Ares Management's record-breaking second-quarter fundraising achievement. The firm raised $36 billion in gross capital during the period—more than double RBC's internal estimate of $17 billion and substantially above the Street consensus of $21 billion. This outsized performance demonstrates robust investor demand for Ares's alternative investment capabilities across its platform. Supporting this momentum, Ares reported Q2 2026 revenue of $1.43 billion, exceeding Wall Street's consensus estimate of $1.33 billion. However, adjusted earnings per share came in at $1.29, marginally below the anticipated $1.30. The company also reported record assets under management and stronger fee-related earnings, underscoring the quality of its capital raising activity.
From a valuation perspective, Ares presents an attractive entry point for institutional investors. The stock currently trades at a forward price-to-earnings multiple of 19.1 times, representing a meaningful 20% discount to its long-term average multiple of 23.9 times. This valuation gap suggests potential mean-reversion opportunity. Additionally, the company offers a dividend yield of 4.4% backed by a credible track record—Ares has raised its dividend for six consecutive years and maintained payments for 13 consecutive years, with recent dividend growth of 21%, indicating management's confidence in sustainable cash generation.
Ares Management maintains a market capitalization of $44.5 billion with 24% revenue growth over the trailing twelve months. The firm's recent performance has outpaced the broader alternative asset management sector by 200 basis points and the S&P 500 by 300 basis points following Q2 results. RBC Capital maintains Ares as one of its top three recommendations among U.S. alternative asset managers, a position reinforced by the firm's demonstrated ability to deploy capital effectively and capitalize on secular tailwinds in alternatives. Citizens Bank has separately reiterated a Market Outperform rating with a $160 price target, providing additional analyst support for the investment thesis.
The primary catalyst driving RBC's target increase is Ares Management's record-breaking second-quarter fundraising achievement. The firm raised $36 billion in gross capital during the period—more than double RBC's internal estimate of $17 billion and substantially above the Street consensus of $21 billion. This outsized performance demonstrates robust investor demand for Ares's alternative investment capabilities across its platform. Supporting this momentum, Ares reported Q2 2026 revenue of $1.43 billion, exceeding Wall Street's consensus estimate of $1.33 billion. However, adjusted earnings per share came in at $1.29, marginally below the anticipated $1.30. The company also reported record assets under management and stronger fee-related earnings, underscoring the quality of its capital raising activity.
From a valuation perspective, Ares presents an attractive entry point for institutional investors. The stock currently trades at a forward price-to-earnings multiple of 19.1 times, representing a meaningful 20% discount to its long-term average multiple of 23.9 times. This valuation gap suggests potential mean-reversion opportunity. Additionally, the company offers a dividend yield of 4.4% backed by a credible track record—Ares has raised its dividend for six consecutive years and maintained payments for 13 consecutive years, with recent dividend growth of 21%, indicating management's confidence in sustainable cash generation.
Ares Management maintains a market capitalization of $44.5 billion with 24% revenue growth over the trailing twelve months. The firm's recent performance has outpaced the broader alternative asset management sector by 200 basis points and the S&P 500 by 300 basis points following Q2 results. RBC Capital maintains Ares as one of its top three recommendations among U.S. alternative asset managers, a position reinforced by the firm's demonstrated ability to deploy capital effectively and capitalize on secular tailwinds in alternatives. Citizens Bank has separately reiterated a Market Outperform rating with a $160 price target, providing additional analyst support for the investment thesis.
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