
ACRE Stock Forecast & Price Target
ACRE Analyst Ratings
Bulls say
Ares Commercial Real Estate Corp is positioned favorably due to an improving environment for increased loan originations, reflecting positive demand for flexible capital in the commercial real estate sector. The company's strategy anticipates a recovery in portfolio run-off mid-year, with expectations for a significant uptick in originations later in the year. Additionally, the stock's valuation at 0.54 times book value, compared to a peer average of 0.76 times, along with an 11.2% dividend yield, supports a strong investment thesis relative to its competitors.
Bears say
Ares Commercial Real Estate Corp faces a challenging earnings outlook primarily due to the risk associated with a significant weakening in commercial mortgage credit performance, which the company retains on originated loans. Forward estimates for 2025-2026 have been revised downwards as a result of anticipated lower loan originations, increased repayments, and modestly higher expected CECL reserves. Additionally, the broader commercial mortgage REIT sector is under pressure from macroeconomic factors such as rising interest rates, leading to a cautious perspective on the company's growth potential.
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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