
Ares Capital (ARCC) Stock Forecast & Price Target
Ares Capital (ARCC) Analyst Ratings
Bulls say
Ares Capital is a leading BDC with a strong track record through economic cycles and a high-quality portfolio, making it a top performer in the industry and warrants a premium multiple to its peers. Despite concerns around the risk of its loans to software companies, the company's conservative lending approach and minimal exposure to high-risk software loans, with most of its portfolio categorized as low or medium risk for AI disruption, alleviates this concern. With a focused and experienced management team, diversified credit platform, and sustainable dividend supported by strong returns, Ares Capital is well-positioned for long-term success.
Bears say
Ares Capital is a well-positioned company with a strong portfolio and experienced management team. However, the company is facing lender-friendly trends and increased risks from AI disruption and competition in the direct lending industry. Additionally, increased credit risk and a potential downturn in the economy could negatively impact the company's operating results and leverage, which could lead to an impairment of its portfolio. As a result, the stock has a negative outlook, with potential downside risks to its current valuation.
This aggregate rating is based on analysts' research of Ares Capital and is not a guaranteed prediction by Public.com or investment advice.
Ares Capital (ARCC) Analyst Forecast & Price Prediction
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