
ACRE Stock Forecast & Price Target
ACRE Analyst Ratings
Bulls say
Ares Commercial Real Estate Corp is positioned favorably within the specialty finance sector, with an improving environment for increased loan originations and strong long-term demand for transitional capital in commercial real estate. The company anticipates a recovery in portfolio performance, projecting a trough in run-off mid-year followed by a significant increase in originations later in the year. Additionally, the stock's current valuation at 0.54 times book value compared to a peer average of 0.76 times, along with an attractive 11.2% dividend yield, underscores its financial appeal and value proposition.
Bears say
Ares Commercial Real Estate Corp faces a negative outlook primarily due to anticipated weakening in commercial mortgage credit performance, which poses significant risks to its earnings as the company retains credit risk on the loans it originates. Forward estimates for 2025-2026 have been revised downward due to expectations of reduced loan originations, increased repayments, and higher near-term CECL reserves. The broader commercial mortgage REIT sector's challenges, exacerbated by macroeconomic factors such as rising interest rates, contribute to a cautious industry sentiment, further supporting the negative outlook for the company.
This aggregate rating is based on analysts' research of Ares Commercial Real Estate and is not a guaranteed prediction by Public.com or investment advice.
ACRE Analyst Forecast & Price Prediction
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